HOME owners who face losing thousands of pounds when their defective council-built properties are demolished say they will refuse to move unless they receive compensation.

Wear Valley District Council could face a lengthy legal battle with 30 owner-occupiers on the St Andrew's Estate, in Bishop Auckland, where 120 homes are being demolished because they are too expensive to repair.

The 40-year-old metal-framed Drury-built houses and bungalows in St Aidan's Walk and St Cuthbert's Walk have asbestos in party walls and corrosive salts in their concrete foundations.

The council's housing committee agreed to their demolition this week, after hearing that repair costs would be at least £3.27m, which is more than the authority spends in a year on its major repairs and renovations.

Although tenants will be found alternative homes, owners may only get the site value of their houses.

The authority's housing director, Michael Laing, said the council was not liable because it had not known of the faults when they were sold.

He said: "It is a tragedy for all involved. People bought the properties in good faith and the council sold them in good faith.

"All we can do is act as honest brokers to negotiate on the owners' behalf with any developer interested in the land."

Committee members said the Government should take action and called for a meeting with Bishop Auckland MP Derek Foster and Housing Minister Nick Raynsford.

Owners who attended the meeting said afterwards they could lose at least £20,000.

One said: "I will not move. We should all sit tight because they cannot do anything with us there. None of us can afford to lose this kind of money. I will be seeing my solicitor because the council must have known about this before I bought my house. It is scandalous."

The committee also agreed to clear homes in St Helen Auckland, despite an eleventh hour plea from residents' association chairman Kevin Graham.

Ward councillor Sonny Douthwaite said the move would improve the quality of life for people in the area.