THE true scale of East Lancashire's housing crisis was revealed today when the area's smallest borough said £200million was needed to bring homes up to scratch.

Housing Minister Lord Falconer is set to visit Hyndburn to discuss the situation after housing chiefs became the first in the area to make public their Housing Strategy -- a document they have been required to create to show how they intend to tackle problems.

There are some 30,000 homes in the borough, both publicly and privately owned, of which some 9,000 need repairs to bring them up to an acceptable living standard. All but 500 of those homes are privately owned.

And with more than 1,600 homes described as being 'long term empty,' council chiefs say large-scale demolition may be the only way to solve the area's surplus of low quality houses.

MP Greg Pope today warned that government cash was needed to help eradicate poor housing -- and said the situation in Hyndburn could be just the tip of the iceberg.

The council is working with the private sector to come up with new solutions to the problems.

One scheme being considered is the creation of credit unions so local people can borrow money for their homes at low rates of interest.

A spokesman for Lord Falconer said it was accepted that East Lancashire was one of the worst areas in the country, with Hyndburn the worst in East Lancashire.

Previous studies have shown that Blackburn needs £106million to rectify council housing alone, Pendle needs a similar amount of money to Hyndburn, and Rossendale needs at least £46million.

In Blackburn, Darwen, Burnley, Hyndburn, Pendle and Rossendale, more than half of the private sector housing stock was built before 1919 and many owners cannot afford to repair their homes.

Ken Bury, director of Housing at Hyndburn Council, said: " We think that it will cost about £200 million to sort it all out, which will include demolishing some houses and building new ones, carrying out minor repairs in some and major face-lifts in others.

"We have a duty to help people improve their homes and their standards of living but it isn't easy.

"As a council, priorities have to be given to certain things and there is no guarantee that the money we currently give out in grants, abouy £1.2million a year, will continue.

"Even if does continue at that rate, we are looking at 200 years, which just isn't an option.

Many of those homes in dire need of repair date back to pre-1919. However, houses built in the 1960s and 1970s for a 30 year life are now approaching the end of their natural life -- posing a headache for councils across East Lancashire.

Mr Bury added: "It is a problem the whole of East Lancashire has, but it is chronic here. Many of these houses have lived past their useful life and the people who own them know that repairing them themselves just isn't economical. By spending £20,000 on repairs, they won't push the price of a terrace house past £15,000.

Across East Lancashire, it is believed it will cost £180million to bring council houses alone up to scratch. No accurate figures for all housing are yet available.

Some £46million has been predicted in the past to sort out Rossendale's houses, while figures in Pendle show that 57 per cent of houses are pre-1919 stock -- the type most in need of support.

Badly-built terrace property built for mill workers in the late 19th and early 20th centuries have now become unpopular and out-of-date, said Mr Bury, pushing prices down and resulting in many becoming empty as people flock to affordable new homes.

A Whitehall offical said: "Most are in private ownership but the low incomes of local people and the low value of property makes it difficult for them to raise the money to refurbish homes.

"There is a growing problem of abandoned houses leading to further decay of streets. It is accepted that some of the worst problems are in Hyndburn, Burnley, parts of Blackburn and Nelson. Hyndburn is particularly bad." Greg Pope said: "I recently asked a parliamentary question about private housing disrepair. I was told Hyndburn is receiving £3million over the next year. That is a lot more than in past years but it is still not enough.

"I have written to housing minister Lord Falconer asking him to come to Hyndburn to see for himself the problems.

"I have not had an official reply but I have heard on the grapevine that he is likely to come.

A spokesman for Lord Falconer said: "I am aware of the very real problems facing the authorities in East Lancashire in terms of private properties.

"Lord Falconer hopes to visist the area to discuss these problems and see what action can be taken subject to him finding a clear date in his diary.