HOMEOWNERS on an estate earmarked for demolition say they are getting a raw deal.

Plans have been drawn up to bulldoze and rebuild parts of the run-down Whitehill estate in Pelton Fell, near Chester-le-Street, in an attempt to regenerate the area.

Nearly two-thirds of the council homes are empty and attract vandals and arsonists.

Under current proposals, about 300 homes will be demolished and replaced by a mixture of social and private housing, along with a new village hall.

But people on the estate who have bought their council homes say they were alarmed at the options they are being offered in return for having their homes demolished.

A consortium of housing groups has been appointed to oversee the work, which is being carried out by Chester-le-Street District Council.

They are giving homeowners the chance to own 75pc or 50pc of a house, then 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.

Paul Hunwick, who lives on the estate, said all 20 homeowners were unhappy with all of the options.

He said: "There's four couples up on the estate who have paid off their mortgage, so they certainly don't want to be offered just 75 per cent of a house.

"The other option is buying a house, but we have to wait until the whole estate is finished and then go to an estate agent like everyone else.

"There's people who have lived here for 30 years and none of us will get priority."

Residents are now considering employing lawyers to represent them in negotiations with the developer.

Mr Hunwick said: "We were expecting to be given a minimum price for each home and extra for improvements, but we have been told that they haven't come to any conclusions because all the houses are different."

Nomad Housing is consulting with all residents over the development plans and is currently staging one-to-one discussions with people.

A spokesman for Nomad said: "Negotiations are ongoing with regards to achieving a settlement with the homeowners but, as yet, nothing has been finalised."

Anyone with concerns had the chance to put them to groups involved in the consortium during the one-to-one interviews.