RESIDENTS whose "palatial" homes are marooned in a semi-derelict street today spoke of the battle against housing decay after their plight was raised in Parliament.

Burnley MP Peter Pike raised the case of Burnley Wood as he welcomed the government's announcement of £2.66million to kick start the revitalisation of East Lancashire's homes blackspots.

Cabinet Minister Stephen Byers confirmed that the area for the special "Pathfinder" housing renovation project -- expected to win up to £670million of government cash -- will include Burnley, Pendle, Blackburn, Hyndburn -- and probably Rossendale.

But residents are battling against falling house prices as more and more properties in the area become derelict or empty. Mr Pike told Mr Byers: "Last week a family visited my advice bureau. I have known them for 40 odd years.

"The family's home is an absolute palace. The next door house on one side has been empty for ten years and the next door house on the other side has been empty for two years.

"The house on the opposite side of the road had two fires last week, and a house in a block at the back of the family's home had a fire last week. The family is absolutely terrified of living there, and I would be terrified if I lived there.

"It is unacceptable that such a situation exists in 2002."

Mr Pike said the three female relatives still living in the Burnley Wood property were terrified of vandals.

Jacquline Dean, 31, also of Crowther Street, Burnley Wood, who has lived in the area all her life added: "I am planning to buy this house because at the moment I am just renting. It will only cost £9,000 for a three bedroom property which is crazy money, but when you see what we have to live with it isn't any wonder that house prices have hit rock bottom.

"There are homes fire bombed every night around here so I am hoping that as soon as all the derelict houses are pulled down then we can start getting back to a normal life."

Jeanette Barnes, 45, of Crowther Street, Burnley Wood said: "I have only lived here for six months and in this time I have seen more than some people could ever imagine.

"The house next door was gutted by fire last week, which was scary because the way the fire spreads it could have come into my house.

"I have always taken pride in my home but it is hard when all you see every day is boarded up houses and burning waste in the nearby fields.

"I am glad that Peter Pike has raised the desperate situation in the House of Commons because it will only be a matter of time before somebody is killed or seriously injured in a fire around here."

Mr Pike said that in his 19 years as an MP he had asked 300 questions on housing in East Lancashire and met a string of ministers but only now was the government doing anything about it.

He said people no more wanted to live in terrace houses with poor access to light than they did wish to stay in a seaside boarding house with a toilet at the end of a corridor and a shared bathroom.

Mr Byers promised Mr Pike: "We have a responsibility to the people in Burnley and elsewhere to ensure that the desperate situations many people encounter do not continue."