THREE hundred council houses earmarked for demolition stand in the way of a smooth transfer of all Burnley's council homes to a new local housing company.

Town hall bosses, bidding for a £125 million government cash boost, hoped to use around £500,000 of the Single Regeneration Budget money to clear the empty and boarded up homes in South West Burnley and spruce up the estates.

But when the Government recently told Burnley not to go ahead with its bid it left the council with a headache.

For unless the run-down properties are cleared, they will considerably reduce the value of the housing stock and make it less viable to transfer to the housing company.

Now housing chairman Rafique Malik and housing director Ian Saville say they are looking for alternative forms of funding for the demolition.

Said Coun Malik: "Whatever happens it will not stop us pressing ahead with the transfer if he tenants give a yes vote."

The transfer will unlock £40 million cash which the council is not allowed to raise itself, enabling the new company to make vast improvements to the town's 5,000-property stock.

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