HOUSING problems in Daneshouse and Stoneyholme would cost £40 million to put right, a survey has revealed.

But Burnley council will make a start on improving the area with £3.1 million in government loans.

The council will begin to tackle the problems of poor housing and roads over the next three years.

The plan is to attract private-sector investment to an area which council officers say is deprived socially, economically and environmentally.

"The area is one of the poorest in the borough," says regeneration officer Lea Fothergill in a council report.

She says the government money, the result of successful council bid, is a vote of confidence in council plans and recognition of "severe deprivation problems."

The council plans housing clearance on four street off Princess Way - Cavour Street, Rectory Road, Holme Road and Ashley Street - as well as highways work and group repair schemes, if affordable.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.