A HOUSING chief has warned that plans to transform a troubled estate could founder if negotiations with homeowners fail.

Sunderland Housing Group chief executive Peter Walls has said a few "difficult" private residents could ruin housing replacement plans in Doxford Park.

The multi-million pound development is to replace sub-standard 1970s prefab-style houses with modern family homes.

A total of 150 of the 850 homes on Doxford Park have been bought privately, and each owner will have talks with Sunderland Housing Group to discuss financial and housing options.

But if homeowners refuse to accept the group's final offer, or do not want to move, the scheme could be jeopardised.

Mr Walls said: "Owners at Doxford Park think that we need their home to go ahead with the development.

"But we could continue the project without buying their properties, or if they are difficult, leaving us with huge problems in building the new estate, we could decide to develop another site altogether."

Sunderland Housing Group is investing £300m on 4,000 new homes over five years - starting in Carley Hill, Ford Oval, Holmlands in Houghton, Albany in Washington and Doxford Park.