FAMILIES on a rundown estate scheduled for demolition have still not received a final offer for their homes, it emerged yesterday.

Developer Bellway Homes is due to flatten the Whitehill council estate in Pelton Fell, near Chester-le-Street, in a bid to regenerate the area.

Chester-le-Street District Council awarded Bellway the contract for the redevelopment two years ago. But the builder has still not reached a deal with those families who purchased their homes under the Government's Right to Buy scheme.

One couple affected is Les and Florence Knox, who said they do not want to leave the village.

Mr Knox, 70, who has lived in the house for 68 years, said: "My wife is so depressed about this that my daughter has had to take her away for a break.

"We are very upset that we could lose our homes in this way and no one seems to be interested in making things right. I've lived here all my life and never thought I would be made to leave. My wife is disabled and for her to move will be difficult."

Most of the Whitehill estate is to be demolished and 260 homes built in its place, in a scheme involving the council, Bellway, Durham Miners Association and Nomad Housing. At present, nearly two thirds of council homes on the estate stand empty.

So far the consortium has offered homeowners the chance to own 75 per cent or 50 per cent of a house and rent the rest from the developer.

Alternatively, they can buy a house on the estate once it is on the open market, or swap their home for one of the same value in a different area.

A total of 18 families on the estate are holding out because they want to own a full house.

A spokesman for Bellway said: "There is a working group with residents that is discussing this and there will be no demolition until this consultation process is completed."

A spokesman for Chester-le-Street council said: "The owner-occupiers have already expressed their concerns about not being able to afford to stay in Pelton Fell after the scheme is completed.

"It is at this stage premature to speculate about the eventual options open to owner-occupiers, as this is still subject to further negotiation between the council, the consortium and the affected owner-occupiers."