A COUNCIL which ordered the demolition of 150 homes against the wishes of scores of residents should have renovated the properties instead, a government inspector has ruled.

And the damning ruling has stripped Blackburn with Darwen Council of the compulsory purchase order which would have given it the power to buy up and demolish the remaining 11 privately held homes in Darwen's Redearth Road triangle.

Today Rod Aldridge, the businessman behind the new city academy planned for the triangle site, warned the council it only had until December to agree a deal with the residents and clear the area or the plan would be scrapped.

Residents said they felt they had been deceived all along over the "Draconian" scheme, part of the Elevate project to improve East Lancashire housing, and some called for compensation.

Janet Anderson, Darwen MP, said "what has happened has happened" and it would be a shame for a handful of residents to stand in the way of Darwen getting a £33million academy.

The 66-page report was compiled by planning inspector Richard Ogier following a public inquiry earlier this year.

It followed two years of protests by residents who said their homes were still fit to live in. It concluded: l The council had not paid sufficient attention the views of the local community.

l The houses were unfit but the action suggested demolition appeared draconian and was not supported by the relevant technical or appropriate professional evidence from the council.

l The estimated costs of repairing homes was likely to have been exaggerated by the council.

l The conclusion that demolishing homes was the best course of action was seriously compromised.

However the inspector also concluded that there was no evidence to show the council made the order specifically to make the land available for the academy Mr Ogier added: "It is clear that the statutory process before and after the making of the order has itself significantly contributed towards the area's deterioration.

"Yet there is sufficient of the fabric of the area in my view left for it to be rescued from this critical condition."

Coun Mohammed Khan, executive member for housing and neighbourhoods, said: "We will now look carefully at the report before deciding which route to take.

"But we are determined to ensure that this one technicality does not derail our plans to provide quality housing and a first-class school for families in Darwen."

Christine Oldfield, who had led the campaign against demolition, said: "I am angry. I don't know whether or laugh or cry."

She moved from her Redearth Street home into Industry Street two months ago because her landlord sold the house to the council.

She added: "I'm gutted, because I should not have had to move in the first place."

She demanded compensation from the council for what they had put her through.

Mrs Andersonsaid: "My view now is that we desperately need an academy for Darwen and it would be a shame if a handful of people prevent that."

But Mr Aldridge, speaking while on holiday in Spain, said: "I have made it clear I want this academy to open in September 2008, on the assumption that the land be delivered in early December."

When asked whether, if the academy could not go in Redearth, was that the end of the project, he answered: "To be blunt, yes, I think it is."

Coun Colin Rigby, leader of the Tory opposition said: "The council have been insensitive from day one, not consulted with people and not been straight up with people."