A COMPENSATION package for homeowners affected by regeneration plans has been agreed by Middlesbrough Council.

The controversial scheme has been attacked by many people who fear they will be affected by negative equity if they are forced out of their homes.

Residents living in the 1,500 homes in the Gresham and Middlehaven areas of the town believe they are being shortchanged by the council.

Cash assistance is being offered to improve homes throughout the older housing areas in the town, while homes set to be demolished will be independently valued before compensation is agreed.

Cath Rozevskis, of Tennyson Street, says the council is trying to take advantage of residents.

Storming out of the regeneration meeting, she said: "This is my house you are talking about. I know what it is worth and I think this package is outrageous.

"Some people might think I am stupid, but I can assure you I am not, and we will fight these packages."

But council bosses have moved to ease concerns by reminding people that the figures used are purely an example and do not reflect precise market values.

Councillor David Budd, executive member for regeneration, agreed the proposals at a meeting at the Town Hall yesterday that will now go out for public consultation.

He said: "This is much more straightforward than people think it is. We are not telling people this is the value of your property. They will be independently valued and that will be to the market value which has to be agreed with the householder."

In the Gresham and Middlehaven clearance area, the average price of more than 150 property transactions last year was about £44,500. In nearby areas, such as south of the Gresham-Middlehaven clearance area to Crescent Road, the average price of 200 property transactions last year was about £50,500.

Councillor Ken Walker, who represents the Gresham ward, asked for the decision to be postponed until residents had more chance to read the report.

He said: "I think the figures are fundamentally flawed. There will be a shortfall of about £15,000 for most people, and some will find themselves with mortgages in the £30,000 range in the area that they can move to. We are bulldozing this through unnecessarily."