A MASSIVE Government project to breathe new life into East Lancashire towns by rebuilding thousands of houses was launched today.

The plans - due to be announced today by deputy Prime Minister John Prescott - come as it was revealed one in five in the area homes are so unfit to live in that they are likely to cause the occupants ill-health.

Mr Prescott was expected to reveal that in the next three years £500million is to be injected into seven 'Pathfinder' projects set up last year to regenerate rundown areas across the county.

East Lancashire councils involved in the one of the projects -- Blackburn with Darwen, Burnley, Hyndburn, Pendle and Rossendale-- have drawn up a 10-year battle plan which will cost more than £670million.

Today, politicians who have been campaigning for decades for help with rundown housing, welcomed the move but said the cash was just the first step on a long road and much more was needed.

The scheme will involve council using private developers to pull down tens of thousands of rundown council and privately-owned houses, many of them pre-1919 terraces which have fallen into disrepair.

They will be replaced by a smaller number of modern houses, along with environmental improvements which will make them desirable places to live.

This is achieved by providing new facilities and tackling issues which make areas unpopular -- such as crime.

There is also direct link between deprived areas and poor health. Statistics collated by local councils today reveal that one in five of all houses in East Lancashire are classed as unfit - with things such as damp and a lack of heating - and have the potential to make the occupants ill.

Housing minister Jeff Rooker said the projects had already started and given hope of a revitalised future to the nine areas most acutely affected.

He said: "The Pathfinder projects will enable local authorities to tackle once and for all the problems created by low demand housing."

The number of empty houses -- even those which are fit to live in -- is another reason why East Lancashire is attracting money from Government.

The local figures are way above the national average of four per cent.

In East Lancashire, hundreds of council houses fail to meet the Government's 12 standards for living. Many fail because of damp, lack of repairs and structural defects.

Government minister Ian McCartney was due to tour part of Accrington which will benefit from Pathfinder.

Councillor Bill Taylor, leader of Blackburn with Darwen Council, said: "We have been campaigning for some time for funding to tackle the decline in local housing markets, so this announcement is particularly welcome.

"This is a unique opportunity for us tackle the root causes of housing market decline and focus on building strong neighbourhoods for our residents.

"The project is gathering momentum and once we know how much funding is to be allocated to the area we will have a better picture of the range of initiatives we will be able to introduce as part of this 10 to 15 year programme."

Hyndburn MP Greg Pope said: "I am delighted that the problems of East Lancashire have been recognised by the Government. Today's announcement is very welcome but it is just a first step in a long road.

"We need hundreds of millions of pounds over 10 or 20 years and I will be doing all I can to make sure that we get it."

Rossendale and Darwen MP Janet Anderson said: "This is fantastic news. A great boost for the area.

"I am delighted that Rossendale has been finally included in the Pathfinder scheme."