Hundreds of thousands of new homes are a major part of the plan

Inspectors published their findings after months of debate over the South East Plan, at hearings in Woking, Chichester, Maidstone, and Reading.

They said the housing figure should be increased by 10%, there needed to be infrastructure commitments, and a flexible approach to greenbelt land.

Their report drew a mixed reaction from the authorities affected by the plan.

The South East Plan, which sets out a 20-year vision for the region, had suggested the building of 28,900 new homes a year.

It covers Berkshire, Buckinghamshire, East Sussex, Hampshire, the Isle of Wight, Kent, Oxfordshire, Surrey and West Sussex, and affects eight million people.

'Disappointed and angry'

Hampshire County Council leader Ken Thornber said: "We said we could build 28,900 houses a year and no more in the South East.

"I am disappointed and angry that Hampshire County Council, which is already taking the lion's share of new housing in the draft South East Plan, is now being told to take even more."

West Sussex County Council leader Henry Smith said: "Although 32,000 homes is more than we said is sustainable, it is a proposal which can be discussed.

"The panel has accepted many of our argument about the pressures facing West Sussex and the South East."

Mr Smith added that the government needed to ensure that roads, health facilities, schools and public transport were put in place to support new homes.

Social issues

The South East England Development Agency (Seeda) welcomed the increase in housing figures in the plan but also called for clear commitments over infrastructure.

The plan was developed by the South East England Regional Assembly (Seera) to identify requirements for housing, jobs, transport and the environment.

It will become the statutory document that local authorities across the South East will have to follow.

The Examination in Public hearings discussed all aspects of the plan - house-building, jobs and the economy, transport, the environment, waste disposal and social issues.