REGENERATION bosses have been warned they could make terrace homes across East Lancashire too expensive to buy if they focus too much on demolition.

The warning, backed by conservation group English Heritage, has come from a committee of MPs monitoring the area's Elevate project.

The committee, which shadows the office of Deputy Prime Minister John Prescott, praised aspects of the work being done to breathe new life into local housing.

Its report welcomes the £1.2 billion allocated for East Lancashire and eight other Pathfinder areas in England between 2004 and 2008.

But it is concerned at the lack of clear objectives and failure to give a proper commitment to future funding of the 15-year programme.

The all-party group expresses concern that too many properties may be demolished, making them too expensive for local people to buy.

It expresses concern over the scale of demolitions envisaged and the impact on vulnerable communities.

And it says more needs to be done to refurbish existing housing "so the heritage of areas is preserved and forms a basis for their regeneration".

The committee, which has a track record of getting recommendations adopted by the Government, highlights the concerns of the community group Home Environments at Redearth Triangle, Darwen.

The group suggested insufficient survey work had been carried out before Elevate had decided to demolish 150 homes because of their condition.

The report says: "Some demolition is required, but there is a risk this initiative will be seen as a major demolition programme, which will repeat the mistakes of previous clearance programmes that destroyed the heritage of areas and failed to replace it with neighbourhoods of lasting value."

Simon Thurley, chief executive of English Heritage, has also claimed there is a case for keeping the homes and claimed they are often better built than modern houses.

He said: "Our policy is not to go in with boxing gloves and duff people up, but to persuade councils to think before they go ahead."

Max Steinberg, chief executive of Elevate East Lancashire, said he agreed with some areas of the report.

But he added: "Where we can see a long term future we will make necessary improvements. That is not the case everywhere and in some areas selective demolition will be required. In the first two years 1,200 will be improved and 800 demolished."

The committee highlights the success of the Enquiry by Design Process in Whitefield carried out by the Prince of Wales Foundation where local consultation led to a major regeneration and "significant turning point in the fortunes of Whitefield".