BURNLEY is set to splash out up to £40 million in the biggest housing renewal initiative in the town's history.

The aim will be to transform the town's most depressed area - the predominantly Asian district of Daneshouse and Stoneyholme - and work could start early next year.

Homes will be cleared, new houses built and hundreds of properties improved as families are relocated.

A special report to tomorrow's meeting of housing committee urges councillors to give the area priority status for complete renewal.

The move follows a detailed study of Daneshouse and Stoneyholme - a district with the highest unemployment, poorest social conditions and worst housing conditions in Burnley.

The survey has revealed high levels of unfit housing and council officers reckon it will cost £32- £40million to put things right.

But they warn that even the lower level of spending would not be achievable on a ten-year programme under current staffing levels and the cash available. They are urging councillors to split up the district and declare individual renewal areas on a rolling programme.

They say the housing committee should decide which part of the district should get first priority at a meeting on May 29, with a view to making a formal renewal area declaration as a matter of urgency - by January 1997 at the latest.

Burnley's £19million Challenge Fund of government cash will support the scheme.

Officers say housing clearence in the area will have to be handled sensitively, with particular attention paid to compensation and rehousing issues and add that new Relocation grants may be particularly helpful.

Their report states there will be a need for substantial investment in new Housing Association homes.

It adds: "Given that many of these are likely to be built on council-owned land, it is probable that the council will be requested to sell the land at a discount.

The report says an early declaration is imperative to keep faith with earlier council promises and meet the raised expectations of residents and community groups in Daneshouse and Stoneyholme.

They warn that the massive cost implications could hit money spent on other areas of town.

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