THE regeneration of a Darlington estate has suffered a setback with news that no new hones will be built for at least 12 months.

But Darlington Borough Council has been quick to reassure residents that the Firthmoor redevelopment will go ahead.

After the demolition of 300 houses on the estate, it had been expected that the first phase of building work would begin early next year.

But the council has said that problems have arisen which have put back the building timetable.

The authority had been in talks with Keepmoat Partnerships over the building of low-cost housing.

But construction costs would outweigh the profit Keepmoat would make, and the council has been unable to clarify Government guidelines regarding gap funding, which would make up the shortfall.

However, plans to demolish Firthmoor Junior School and replace it with a £2m school in the middle of the estate is also affecting regeneration plans.

The council says opening up the present school site to housing developers would provide a more attractive proposition, because it is larger and on the edge of the estate.

Council chiefs say they plan to continue talks with Keepmoat and other developers in an attempt to come up with new proposals.

John Buxton, the authority's director of development and environment, said: "Like all schemes of this nature, we have come across a hurdle which has stopped us. There will be a long-term benefit over the next 50 years, and if it takes 12 months to get it right, it will be worth the wait."

The council is not allowed to use the £3m granted from the Government's Single Regeneration Budget for building homes.

It is for community-based projects such as funding neighbourhood wardens and anti-crime initiatives.

But the council is keen to stress that plans for a new school and community centre will draw people to the estate and make it more attractive to developers.

Bill Cook, chairman of the Firthmoor Community Partnership Board, said: "There is a sense of disappointment, but the council have been up front with us and we realise they are doing their best.