Farnham could be getting a new nature park – and potentially hundreds more houses – as part of a £2million plan put forward by Waverley Borough Council.

The council (WBC) wants to transform a 20.9 acre site off Hale Road into a Suitable Alternative Natural Greenspace (SANG).

The move follows an agreement with the Ismaili Trust with plans to purchase and establish the SANG next to Farnham Park coming before councillors on Tuesday (September 1).

Funds from the SANG Reserve (£900,000), Capital Receipts (£373,000) and General Fund Working Balances (£783,000) have been earmarked for the outlay.

SANGs provide attractive places for walking, exercise and enjoying nature while helping to reduce recreational pressure on environmentally sensitive areas such as the Thames Basin Heaths Special Protection Area.

The proposed site would extend the green space, improve biodiversity, and provide additional parking for visitors to both Farnham Park and neighbouring St John's Church.

But it could also pave the way for up to 532 new homes to be built around Farnham, as some recent applications have stumbled because of a local SANG.

“Planning rules require new developments within the Thames Basin Heaths zone of influence to mitigate their impact on protected habitats within the Special Protection Area,” said a spokesperson for WBC.

Cllr Mark Merryweather, WBC Portfolio Holder for Finance, Assets and Property, believes the move will benefit many people in the area.

He said: “This is an exciting opportunity to create a wonderful new natural space for local people to enjoy for generations to come.

“By extending the green space next to Farnham Park, we can provide more opportunities for walking and exercise while helping to protect some of Surrey's most important wildlife habitats.”

He added: “The proposal would also support the delivery of much-needed new homes, including affordable homes, by providing the environmental mitigation required for new development.

“This has been a complex project that has taken time to bring forward. I would like to thank the Ismaili Trust, the current landowners, for the constructive way they have worked with the council throughout the process.

He concluded: “We are delighted to have reached this important milestone."

President Naushad Jivraj of the Ismaili National Council, which has been granted permission to build a funeral building off Hale Road, hailed the agreement.

He said: “The Ismaili Trust is pleased to have worked constructively with Waverley Borough Council to make this opportunity possible.

“We are delighted that the land will continue to serve the local community while supporting the protection of important wildlife habitats.

He added: “We are also very pleased that the proposals will provide much-needed parking for St John's Church.”

If the purchase is approved and the scheme reaches fruition, the land will be managed under a long-term plan developed in accordance with Natural England guidance.

Its creation, management and maintenance will be funded through developer contributions secured through the planning process.

However, consent will also be required by the West Surrey Shadow Authority before the purchase can proceed.