A SHOPKEEPERS' spokesman has blasted the demolition of empty houses in a problem neighbourhood as "lunacy''.

Peter Gifford said houses being torn down at Grove Hill, Middlesbrough, all received new kitchens and bathrooms, central heating and double glazing in recent years.

As co-ordinator of the Eastbourne Road Traders' Association, he sat on the committee of the regeneration programme, Grove Hill 2000, which oversaw the modernisation work.

Middlesbrough Mayor Ray Mallon yesterday signalled the start of demolition work on 24 vandalised homes.

Mr Gifford said: "It's lunacy, because we have got Gordon Brown saying we have got to have more new housing, at the same time houses are being demolished at Grove Hill.

"It beggars belief. How much is it costing to destroy these houses that have double glazing and new bathrooms and kitchens - where they have not been stripped by vandals and thieves?'' Mr Gifford maintained that many of the houses could be made habitable again. He said that while on one side of the estate there is not one empty house, there are 286 empty houses on the opposite side.

He said most could be renovated and re-let, instead of being pulled down.

"They are destroying our customer base,'' Mr Gifford said.

Mr Mallon earlier this year called on social landlord Erimus Housing to start the regeneration of Grove Hill.

Erimus embarked on a homes modernisation programme earlier this year, as part of a £105m investment programme.

While the group has already knocked down a number of empty unpopular properties that were generating problems in Grove Hill, as part of the major regeneration of the estate, residents have asked for scores more properties to be bulldozed to tackle anti-social behaviour and revamp their estate.