TWO streets of rundown houses could undergo a £815,000 rejuvenation using council cash, despite the majority of the properties being privately owned.

Many of the terrace houses in South Shore Street and Blackpool Street, Oswaldtwistle, have become dilapidated since being bought by landlords for the rental market.

The area is also blighted by six properties purchased by Hyndburn Council in 2004, which are unfit to live in and have been boarded up.

Complete renovation of the council houses will cost £190,000.

Equity loan schemes will also allow residents to borrow money from the council and repay it when they sell their homes.

Each household can apply for up to £25,000 to carry out improvements such as rewiring electrics and putting in new windows.

Full participation by all house-holders would cost the council £725,000, but the estimated take-up rate has put the budget at only £300,000.

A further £175,000 will be spent by the council, without having to be repaid, to carry out a face lift' to the front of all the buildings and another £150,000 will be used to improve the street environment.

The massive revamp is part of the council's ongoing project to redevelop areas where housing standards are poor.

Residents have complained that the depressing look of the streets has led to increased anti-social behaviour, fly tipping and an apathy over house appearances.

St Andrew's ward representative Coun Brian Walmsley, said: "We do have one or two grot spots in Oswaldtwistle and any improvement is welcome."

The scheme should be self-funding, with the profits from the future sale of the council houses for £75,000 each covering the costs for the refurbishment of the other properties.

Regeneration portfolio holder Coun Tony Dobson said: "When we have refurbished and sold our properties hopefully we will have made enough profit to put into equitable loans.

"The owners of the other properties will then be able to do up their homes too."

The proposals will be considered at a scrutiny committee meeting today.