A hostel used by patients with mental health problems could be closed down to save £750,000.

Proposals have been made to close Haydon House, in Haydon Road, Wandsworth, by South West London and St George's NHS Mental Health Trust (SWLSTG).

The new adult rehabilitation model put forward by SWLSTG would see the number of rehabilitation beds reduced from 37 to 25.

Thrale Road Hostel, in Thrale Road, Furzedown, and Westmoor House, in Roehampton Lane, Roehampton, would be expanded under the new model.

The rehabilitation service, which helps people back into the community, also supports patients living in Merton, Kingston, Richmond and Sutton.

The trust has said it intends to invest £100,000 into the rehabilitation service, with the new model encouraging independent living.

Wandsworth Clinical Commissioning Group will benefit from the rest of the £650,000 savings.

Current residents will be reassessed and moved to the appropriate place.

A council paper, discussed at the adult social care and health overview and scrutiny committee meeting, said: "The Trust’s new model proposes acceleration through the pathway of care, encouraging clients to access independent living services with appropriate support faster than in the current model.

"In this case, the number of people affected will be small, but the closure of a building in which some of them may have been resident for a considerable time represents a major impact for some individuals."

A spokesman from SWLSTG said: "We are in the process of reviewing our rehabilitation service model with a view to providing an improved and more efficient model for users across the borough.

"Any changes will, of course, be subject to scrutiny by Wandsworth’s Health Overview and Scrutiny Committee."

The director of adult social services has raised concerns the reduction in beds could result in patients needing social services earlier, putting pressure on Wandsworth Council.

SWLSTG have already agreed on the model, with hopes to close the hostel by early 2014.

Wandsworth Council will vote on whether the proposals go ahead next year.