A COUNCILLOR has been accused of living in a dream world for suggesting families facing demolition of their homes should be given compensation packages of at least £100,000.

A dispute has erupted between Ken Walker, a councillor representing a Middlesbrough ward which is to lose 37 streets, and Councillor Dave Budd, executive member for regeneration on Middlesbrough Council, which is planning a massive revamp.

The fresh wrangle comes only weeks before a regional agency will decide whether to approve a plan to bulldoze 1,500 terrace houses spread across the centre of Middlesbrough.

In an open letter to Coun Budd, Gresham ward councillor Ken Walker said: "I base my figures on current property prices for terrace housing just off the Linthorpe Road area of Middlesbrough, where average prices of properties are between £85,000 and £95,000.

"Given that many of these properties will need varying levels of renovation and adaptations to meet the same high standards as many homes Middlesbrough Council executive wishes to demolish, I would therefore respectfully suggest to you the average figure for compensation and quality re-housing (fit for the 21st Century) must be in the minimum region of £100,000.''

Coun Walker wants to know where Middlesbrough Council intends to relocate residents whose homes will be demolished, and what it is going to cost them in real financial terms to lose their homes.

Coun Budd responded yesterday: "He claims to have evidence of comparable house sales, but when we ask him for it, he has not been able to provide it.

"He is just simply living in a different world from real people when it comes to putting up figures like this.

"We don't intend to relocate people, but to ask them where they want to go, which is entirely different.

"We have started knocking on doors, asking people in depth, rather than in headlines. It is not going to happen overnight.''

Looking ahead to a crunch meeting of the North-East Housing Board on the plan, on January 15, Coun Walker said: "I, of course, still hope and trust that the board will not recommend funding for this disastrous project to the Office of the Deputy Prime Minister.''