A MAN has slammed as 'derisory' an offer made on his house as part of a compulsory purchase order, saying it would leave him thousands of pounds in debt.

Kevin Savage, 45, bought his four-bedroomed terraced house in Lonsdale Street, Accrington, more than 10 years ago, after moving from a crime-ridden council estate in Salford.

The father-of-three, who has a mentally-handicapped daughter, paid £23,000 for it and says he has since spent nearly £10,000 on improvements.

Although he still owes the £23,000 on an endowment mortgage, he says he has been offered £17,000 by Hyndburn Council as part of a clearance programme to make way for Project Phoenix in the Lower Antley area of West Accrington.

Project Phoenix aims to provide new homes and amenities, including a large health centre, over a five-year period.

"This authority has offered me a scandalous £17,000 for a house that would be worth £40,000 in any other part of Accrington," said Mr Savage.

"Would they please tell me where I can find a similar property for £17,000?

"If I accept the derisory offer from the authority it will leave me several thousands in debt. My mortgage lender says that unless I make up the shortfall, I will not be offered another mortgage."

Mr Savage, a former union shop steward, says he had an estate agent's valuation on the property after receiving the offer from the council, which produced a £20,000 price tag on the stone-built house.

"We scrimped and saved every penny we had to get this mortgage. Any spare money we had we put back into the house," he said.

"We thought it was an investment for the kids but it's all lost. These houses have history and character and the council wants to flatten them.

"The mortgage on my house is £100 a month. The cheapest council house is £55 a week. That's for renting, not owning. It's crazy.

"I don't want to lose this house, it's a lovely home. I don't know what the council thinks is wrong with terraced housing. With a grant some of these houses could be a picture. They are solid. They exude character. But they want to rent you little toyland houses with paper-thin walls, at a premium.

"Because my daughter is autistic, any noise upsets her. If we have noise she is awake all night, which is detrimental to all the family."

Nigel Rix, director of Hyndburn First, the regeneration body overseeing the project, said a new government scheme was being introduced to allow councils to provide grants so homeowners could relocate without falling into negative equity.

He said: "As a council we are not turning our backs on any homeowner or tenant in that locality. We are going out of our way to meet each person with their representatives to reach an amicable solution.

"It's very important for the future of Hyndburn that where there is low demand, we do our best to attract large levels of new investment in the process of selective clearance. There are 3,000 homes in Hyndburn not wanted by local people."

He added: "We always offer market value but it's open to negotiation. We would expect when the offer has been received by the residents for them to appoint their own surveyor to negotiate with us. At no stage have we heard from anyone acting for Mr Savage."

Anyone with any concerns about the compulsory purchase order can contact Andrew Leah, a surveyor with Hyndburn First, on 01254 600604.