A BLOCK of flats built for £1million five years ago is to be demolished due to a lack of demand.

North British Housing Association built 16 flats in Hollyhill Gardens East, South Stanley, in 1998.

The scheme received £350,000 of European funding through the Single Regeneration Budget and Derwentside District Council provided the land for free.

At the time, it was heralded as a significant step in the area's regeneration.

But the development never took off and has been empty for the past three years. Since then, the derelict site has become a magnet for vandalism and youth disorder.

The housing association has announced it hopes to demolish the buildings in the New Year and landscape the area.

An association spokesman said: "There is virtually no demand for these single-person flats and this site has become unsustainable.

"We will consult with the local community on turning the land into some sort of local amenity."

The association has also offered to help residents obtain grants to carry out landscaping work.

Its officers will carry out talks with the funders who backed the scheme, to gain their permission before the demolition can take place.

The singe-person units were meant to solve a housing crisis for young homeless people. But the numbers expected never materialised and the development lay stagnant.

Several proposals had been submitted to transform the site, including turning it into a community resource centre. But hopes were dashed when arsonists broke in and the blocks were gutted by fire.

A spokeswoman for the South Stanley Partnership, which is working to improve life for residents, said: "These flats are an absolutely horrendous eyesore.

"They are a huge attraction for kids who hang around and cause problems.

"There have been efforts made to use them in one way or another, but unfortunately, the yobs got in first and burned it down."

Alex Watson, leader of the district council, said: "When the flats were proposed, there was not a lot of confidence expressed by us and unfortunately, we have been proved right.

"Demolition will make the area a lot safer for residents and when it is landscaped, it will bring environmental value to the area."