RESIDENTS in Nelson are celebrating "a victory for a community" today after the Government ruled their homes could not be demolished.

Two public enquiries have been held in the three years since Pendle Council tried to compulsorily purchase 162 homes in the deprived ward of Whitefield and demolish them in a bid to regenerate the area.

Now the Deputy Prime Minister has accepted inspector Philip Asquith's view that "in this instance the council has not made a compelling case in the public interest why these properties should be compulsorily acquired".

Some councillors have expressed disappointment at the decision not to allow the demolition of the homes, but they pledged today to work alongside English Heritage and Elevate East Lancashire to find a speedy solution to the area's problems.

These are made worse by dozens of empty homes vacated since the demolition threat was announced.

Residents in Whitefield formed an action group to fight the plans, backed by English Heritage, the Heritage Trust for the North West and other conservation groups which believed the 19th Century homes were of "historical significance".

A public inquiry was held in January 2002 but the Secretary of State said he was unable to come to a decision and demanded another inquiry to investigate three points on the collapse of the housing market in the area would affect a decision to repair, rather than demolish, the homes.

The report released yesterday says the Secretary of State "notes that there was considerable evidence before the inspector to suggest that this area of Nelson is characterised by a stable, well-established and close-knit community".

Residents applauded the decision today and said they were planning to hold a street party to celebrate.

Whitefield Conservation Action Group spokesman, Kensington Road resident Sylvia Wilson, said: "A lot of anguish, distress and money could have been saved if this Local Authority and the Government had listened to us in the first place. We, and a lot of experts, have told them all along our homes were worth saving.

"Well-established communities live and thrive in streets that have terraced housing.

"We have had help from all quarters who firmly believed we were right to stand and defend our homes, whether from the archaeological, civic or heritage points of view.

"But we stand together as one voice. These are our homes, our way of life and our lifestyle, a community that should never have been interfered with in the first place."

Council leader Councillor Alan Davies said: "We welcome and end to the uncertainty and look forward to working with English Heritage and the wider community in a spirit of partnership to regenerate the area."

Labour group leader Councillor Frank Clifford said: "It's a disappointing decision.

"At the moment I think it's vitally important we utilise Elevate to seek to recover this ward.

"We can't sit on this. We may not like it but we have to find a way forward. I look forward to plans to uplift and upgrade the area and improve the quality of life of the people."

Conservative group leader Coun Tony Beckett said: "We are back where we started but now with a lot of empty houses as well. All we see at the moment are boarded up houses and dirty back streets.

"But there are no winners and no losers. A decision has been made and we have now got to agree to do something quickly."

Malcolm Cooper, North West regional director of English Heritage, said: "English Heritage is committed to working with Pendle Borough Council and Elevate to bring about the much-needed revitalisation of this area.

"We will be working with them to ensure that housing solutions are appropriate for both local areas and for East Lancashire as a whole."

David Taylor, chairman of the Elevate East Lancashire Partnership, said: "We see community consultation as an integral part of developing a solution for housing in East Lancashire."

But Ernest Cooper, 74, has lived in Westmoreland Street with his wife Marian, 71, for more than 60 years said: "The council has never been interested in Whitefield and this area has never needed demolition."

Marian said: "Nobody has ever been in our house to see what it's like and if they came in they wouldn't find anything wrong with it."