A pilot scheme to transform derelict Victorian terraces and provide affordable housing could be expanded across Preston.

Adactus Housing Group, formerly County Palatine Housing Society Ltd, has completed a two year project to re-develop four Frenchwood properties, dubbed 'Tardis Terrace', in Roman Road, Selborne Street and Brixton Road.

Housing bosses say the project, which cost £45,000 per property, would have doubled in price if the properties had been demolished and re-built from scratch.

It comes as Deputy Prime Minister John Prescott's, Pathfinder scheme, which aims to bulldoze 10,000 homes in the Midlands and northern England and build new, is being phased in.

The open plan conversions, aimed at people without children, remove part of the first floor leaving a double height living space, open-plan bedroom, a front kitchen, small bedroom and rear patio.

Plans are in the pipeline to redevelop six more homes in Frenchwood and Deepdale after 115 people joined the waiting list.

Paul Lees, Adactus chief executive said: "We had people queueing down the street to see them. People think terraces in the north are small, dark and ugly and these change all that."

Homes in other parts of Lancashire and Manchester are getting similar treatment.

If the scheme is extended in Preston, the new homes could have eco-friendly features like solar-panelling and windmill-powered external lights.

"We're certainly reviewing our plans for Preston, given the scheme's popularity, and hopefully these would have the same features," said Mr Lees. "We know there's a big waiting list but it can be a long process."

Laura Insley, 36, moved into the first re-developed property in Brixton Road, Frenchwood, two years ago. She said: "The houses are amazing and everyone walks in and says 'wow'."

Councillor Carl Crompton, executive member for housing and direct services, said: "Anything that encourages affordable housing is good."