HUNDREDS of Burnley landlords and tenants are facing an uncertain future after a company which manages more than 1,300 houses in the town went into liquidation.

But those linked to the homes in the Accrington Road and Burnley Wood areas of the town were assured that everything possible was being done to solve the problem.

Worried investors and tenants were today trying to set up a meeting with a representative from private company Practical Property Portfolio (PPP) Limited to discuss the situation.

People became concerned after it was revealed that the Department for Trade and Industry, accompanied by Northumbria Police, visited the homes of three directors of two property-holding companies on Thursday and searched their offices in Gateshead.

A petition was then presented by the Secretary of State under the Insolvency Act 1986 to wind-up Napeer Holdings Limited and PPP Limited in the public interest.

At the same time an application was made for the appointment of the Official Receiver to act as provisional liquidator.

The petition is due to be heard on April 30. Action was taken without notice to the companies which were not represented at the hearing and follows investigations under the Companies Act 1985. The DTi said it was unable to comment.

The companies have bought hundreds of houses in some of the most socially deprived areas of Burnley.

Their plan was to sell them and go on to manage the "buy to let" properties for private investors.

Many private investors have already paid PPP £24,000 with which the company undertook to buy, renovate and find tenants on their behalf, mostly those in receipt of social benefits, to occupy the run-down properties principally in the North East of England. A spokeswoman for Northumbria Police said: "On Thursday, March 13, police and officials from the DTi attended the homes of three directors of a North East property holding company.

"The police have been working in close co-operation with the DTi and the official receiver as a result of an investigation which has been on-going for the past few months. The DTi will be making further inquiries.and it is expected that the police will be notified at the end of the investigation." "Practical Property Portfolio advertises in the national press for people to invest in housing schemes within the North East and its assets are thought to be in the region of £100million."

She confirmed there had been no arrests.

Burnley MP Peter Pike said: "It's obviously worrying from an investor's point of view but I am more concerned about the tenants that are already in some of the houses and what will happen to them. I wasn't aware until a few weeks ago that PPP had more than 1,000 properties in the town. When I found this out I made some inquiries with Burnley Borough Council."

Nobody at PPP was available for comment.