The Pompey FC boss has put in a planning application to demolish the Savoy Buildings opposite South Parade Pier, which he owns after taking control of Pierfront Developments last August.

It has long been believed that Mr Redknapp had ties to the development, which used to house the Time and Envy nightclubs, but this has not been confirmed until now.

Mr Redknapp has already got permission – granted on appeal last year – to demolish the Savoy Buildings and to build 92 flats in its place.

Local property experts put the sale value of such a development as being between £13m and £18m, depending on the exact nature of the flats, but the property market is in crisis.

The current planning permission dictates that Mr Redknapp must have plans in place for a new building as soon as demolition is complete, so the manager has come forward with a fresh plan.

The Pompey boss's new application simply seeks to demolish the existing structure – with no mention of any new building.

This has drawn criticism from local councillors.

Tory ward councillor Luke Stubbs said: 'The housing market is in recession, and that could last for years. If he gets permission to knock it down, the site could stand empty for two, three, four years.

'If it goes through it will create an eyesore in one of the most prominent parts of the city. I don't care who the applicant is, this can't be allowed to happen.'

Mr Redknapp said a new structure for the site was being designed but demolition was a priority. He said: 'It's already been sitting there empty for ages, it's been an eyesore for years and years. We've got squatters going in there at the moment, it's a nightmare – we're trying to push on as quickly as possible to put some nice apartments there.

'It needs to be redeveloped. Right now it's rotting, it looks disgusting.'

A spokesman for Pierfront Developments insisted a new building was planned but added it had to be 'commercially viable'.

But property expert Roger Sherliker, from Hampshire agency Hughes Ellard, said it might be years before the market picked up.

'Clearly developing flats right now is not a great idea because of the state of the market. It would be a bit of an embarrassment for the city to have a big, prestige site like that sitting empty, but from a practical security standpoint you can see why.'

adam.kula@thenews.co.uk