A RESIDENTS' association has raised concerns that a major regeneration programme in New Shildon could be about to run into problems.

New Shildon Residents' Association believes that private home owners are losing confidence in a £1m housing facelift project because of the length of time it is taking to complete phases of the project.

Work is currently under way on a group repair housing scheme, run by Sedgefield Borough Council, which is intended to transform more than 100 homes in rundown areas of New Shildon.

The project, funded by Single Regeneration Budget grants, local authority funding and client contributions, allows widespread home improvements at minimal cost.

Despite much of the work which has already been done being greeted with approval in the town, there are still teething problems, according to the residents' association.

It believes that some private householders, who are included in future plans for building work, may pull out of the process leaving less justification for grant funding to the regeneration area.

Association chairman David Snell, said: "The idea is good and it is certainly going to improve the area and improve the housing stock, but we don't want to see the scheme fail.

"We are trying to encourage all those that can to make sure the scheme goes ahead as soon as possible. If residents lose confidence they might not be keen to take up the scheme when it comes to their turn.

"If there are not enough residents taking up the scheme it will not go ahead."

Sedgefield Borough Council, in conjunction with the Three Rivers Housing Association, has completed work in Tomlin Street. Repairs to 42 homes in Scott Street were hampered by bad weather in May. The five-year programme will see improvements in South Street in 2001, Redworth Road in 2002 and Adamson Street in 2003.

Borough council housing strategy coordinator Ian Brown said: "We are trying to build confidence in the area by using local authority and SRB funding to develop the area.

"As you attract housing you attract younger people, making shops more viable and economic regeneration more achievable."