BEACH chalets used by hundreds of holidaymakers every summer are to be sold by a borough council.

Graham Price, head of property services, said Scarborough council was selling the chalets as a business opportunity which would also include the development of new sites.

He said the authority was losing £25,000 a year on the complex of chalets, in the town's South Bay.

"They could be taken over by a company," he said.

"There is considerable potential because of the facelift scheme planned for the South Bay pool area nearby, where they could be an opportunity tio create more chalet sites.