THE demolition of houses in South Bank and Grangetown is the way forward for regeneration, according to a study.

It suggests that up to 1,200 houses should be knocked down to make way for modern housing developments which would improve the environment and boost pride in the area.

The study, commissioned by Redcar and Cleveland Borough Council and the South Bank and Grangetown Single Regeneration Budget Board, says the proposals reflect the problem of low demand for housing in the area.

It says many homes have already been abandoned and that derelict properties are up for sale for as little as £1,500.

Any major housing redevelopment would need large-scale financial backing and, the report says, support from bodies such as housing associations.

It adds that South Bank needs to be revived as a district centre, which would mean improved links across the A66 trunk road. A new discount food store could be provided on Normanby Road.

The redevelopment scheme could cost up to £50m.

If attempts to revive South Bank prove impossible, the study says the prospect of developing a new district centre at Low Grange Farm, next to the A66, should be considered. This could include shops and community facilities.

Councillor David Walsh, leader of Redcar and Cleveland Borough Council, said the proposals "can make a big difference to improving the environment, and giving a better quality of life and opportunity for local people.

He said: "I believe this study marks a watershed for the Greater Eston area because it spells out in stark terms that, without facing up to the kind of issues it raises, local communities will face a continuing downward spiral of economic, social and environmental decline.

"Of course, proposals such as demolishing large numbers of houses will inevitably cause upheaval for local communities.

"But I believe the vast majority will recognise that we have now reached the stage where this is the only way forward if the area is to provide the quality of life which people have a right to expect in the 21st Century."

The findings of the study will be considered by the council's executive later this month.

Members are being advised to accept the proposals as the basis for a major consultation exercise including residents and community groups