It was bought by the Home Office for £15.4million in September 2023 as a possible alternative to migrant hotels. But Northeye has now been transferred to the government housing agency, Homes England.

The agency’s Chief Executive, Amy Rees, said Homes England wants to work with locals to help build homes which meet local needs and “support” Bexhill’s future.

Homes England told the BBC maintenance work would begin at the site while proposals are developed for the site, which was used as a prison between 1969 and 1992.

Ms Rees said: “The transfer of the Northeye site represents not only a significant local milestone but also a clear example of Homes England’s national strategy in action.

“This transfer means we can now start work to bring the former Northeye site back into use.”

The previous government ditched plans to use Northeye for asylum seeker accommodation in December 2024.

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After it was purchased by the government, the site lay empty and racked up security, maintenance and utility costs in excess of £660,000, according to a report in The i Paper.

The National Audit Office found in 2024 that the Home Office had cut corners and made “poor” decisions with the purchase.

Northeye’s price tag was more than double the amount paid by the previous owner a year before.

Bexhill and Battle’s Conservative MP, Dr Kieran Mullan, told the BBC Northeye’s transfer to Homes England would come as a “big relief” for locals.

He said it was better to put the site to use than to leave it lying derelict as some residents feared would happen.

Bexhill local, Jeff Newnham campaigned against the Home Office’s asylum accommodation plan. He told the BBC the transfer was “fantastic”.