A COUNCIL has been left with a bill of more than £600,000 to manage 350 empty properties across East Lancashire after the collapse of a lettings company.

Town hall chiefs in Rossendale have already admitted that an inquiry is underway after the collapse of Todmorden-based AAAW Ltd, just weeks before the end of the Pennine Lancashire Revolving Loans initiative.

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But now it has emerged that the authority, as the lead body for the scheme, is now responsible for managing the vacant properties across Blackburn with Darwen, Burnley, Hyndburn, Pendle and the Rossendale valley, following AAAW’s liquidation.

Back in 2012 Rossendale was given £5.6million by the Homes and Communities Agency to refurbish and resell around 515 empty properties, on behalf of the four other councils.

But AAAW, Rossendale’s scheme partner, owned by Clive Thomasson, an ex-Pendle Council housing manager, went bust at the end of January, owing £275,000.

In a report to councillors, council finance manager Janice Crawford said: “The revenue costs associated with the management of these properties in 2015/16 are projected to be £609,0000, though this is dependent on some key assumptions around the pace of bringing empty properties back into use, occupancy rates and rent collection statistics. As at (July 31) the expenditure totals £264,000.”

Cllr Darryl Smith, Conservative group leader, said: “This figure of £600,000 is a lot of money for taxpayers.”

The authority could faces the return of some grant funding to the HCA and having to write off amounts owing by property owners .