Stroud District Council has told campaigners quizzing Stonehouse residents on the Ship Inn site that any ideas must include suggestions of where to build houses for families in need of a home.

This week community group ShIPS - Ship Inn Project Stonehouse - is launching a "massive consultation" on the piece of land off Bristol Road, which was previously the site of a pub but is now viewed by campaigners as key for the town to make the most of the canal.

But the plot's owner, Stroud District Council, has said it still needs the land for affordable housing, after its plan for nine such homes - and three boat moorings - was rejected by its own councillors at the end of last year. The council has 3,000 families on its waiting list for social housing.

The ShIPS questionnaire comes as the council is also preparing a bid for lottery funding to restore the canal between Stonehouse and Saul Junction, having won an initial round of money last year.

And, instead of the Ship Inn site, the council has earmarked nearby land at Wharfdale for Stonehouse's canalside improvements.

Announcing the consultation, a ShIPS spokesperson said: "We believe this area of land, a little over half an acre, should be a future benefit to canal users and people who live and work in Stonehouse."

“But the question is what should go there? So we decided to ask those involved – everyone in the town.

“This is Stonehouse’s chance to affect its own future.

"Stonehouse Town Council has been good enough to allow a questionnaire in every copy of Stonehouse News – that’s 2,500 – one for every house”

“And we have also put questionnaires in special boxes in the Council Offices, Woolpack, Wynns Café, Family Shopper Store in Quietways,The Post Office in the Co-op and other sites where people can pick up the form, and then leave it once they have filled it in.

“We know it will take a few minutes and people are busy so we have added an incentive – the new landlords of the WoolPack – Ken and Jess, are offering a carvery meal for four for the winners of a questionnaire draw. Every completed form will be entered into the prize draw which will be made at ShiPs first AGM at the Woolpack on March the fourth at 7.30 pm.”

A Stroud District Council spokesperson responded: “Gloucestershire County Council gave Stroud District Council three sites valued at £1million as a contribution towards the canal project. The Ship Inn site was valued at £0.5million, and was sold on to the housing service for affordable homes.

"Unfortunately this is the only land Stroud District Council owns in Stonehouse where we can build affordable homes and our recent proposal would deliver 9 affordable homes for rent and shared ownership as well as 3 moorings for canal boats on the towpath side of the canal opposite.

"We look forward to hearing any proposals from the local community but these need to be realistic and affordable and we welcome any offers or suggestions of alternative sites within Stonehouse where we could build these much needed affordable homes.

"Together with the town council we have also recently undertaken a public consultation on the Wharfdale sites which are alongside the towpath and close to this site. These have an enormous potential to enhance the links between canal and town, offering the opportunity for many of the uses suggested by ShIPS for the former Ship Inn site.”