A ROW has broken out over Hyndburn Council's plans to replace home repair grants with an interest-free loan.

Homeowners on low incomes can currently apply to the authority for a grant to repair and renovate their homes.

But the council has to borrow money to fund the scheme and said repayments are becoming too costly to keep it running it on the same basis.

Instead it is planning

to replace the grants with an interest-free loan, repayable only when the owner sells the house or dies.

Deputy leader of the council, Coun Tony Dobson, who is also the portfolio holder for regeneration, said more people will benefit from the proposed new system.

At a meeting of the Central and Spring Hill Area Council, he said: "We would like to be in a position to help everyone and give them grants, but we have realised that there isn't enough money to go round and we either change it or we sink under it.

"This is an opportunity to make it an all- inclusive scheme where people will apply for an interest-free loan.

"It is not going to be popular, but sometimes we have to bite the bullet. I believe we are making these changes for the right reasons, for the good of the borough."

The scheme will be available throughout the borough, but the intention is to target areas with poor housing conditions and to use an income threshold to target those most in need.

Properties which are not already part of the Elevate housing regeneration scheme can benefit from the loans too, he added.

But Spring Hill ward councillor Pam Barton objected to the plans to axe the grants.

She said: "I am not happy that they are ending. I am sure many people who live in the area will feel the same way."

Mohammed Arif, a local resident and co-opted member of the area council, added: "The council has a duty to support wards like Central and Spring Hill, which have the poorest standard of housing. Your proposals are not acceptable."

The council hopes to introduce the new loan scheme by April, following a public consultation.