A CRUMBLING eyesore on the outskirts of Bolton town centre is set to be demolished next month.

Bulldozers are poised to tear down the Skagen Court block of flats, but fears are growing that hundreds of tenants who used to live in the flats will not be able to move into the new homes which are due to be built in their place.

The Housing Corporation -- the national regulator of housing associations -- was due to provide several hundred thousand pounds to allow Bolton Council to have around 16 of the 80 new dwellings and let them to council tenants.

The remaining houses were to be sold separately and privately owned.

But a decision by the Housing Corporation to reduce funding for the scheme may now mean that all the homes are likely to be privately owned and out of reach of most of the tenants who live in the present 1960s-built block of flats off Higher Bridge Street. Councillors have made a frantic plea to the housing organisation to reinstate the funding but, as the scheme moves forward, they look set to be disappointed. Cllr Noel Spencer, Bolton Council's executive member for housing, admitted: "It would be a huge blow if none of the new homes are for council tenants." Cllr Spencer said the council was desperately trying to salvage funding for the project.

"One of the things we wanted to get on that particular site was a good mix of tenure," he said.

"We are in the process of doing some lobbying and I'm not giving up hope that it will happen.

"It certainly seemed to be on the cards but it now seems that the Housing Corporation's priorities have changed.

"If we don't get the money then it's unlikely that we will have any social housing on the site.

"If that doesn't happen I'm sure we will have a great boost with the additional housing and it will be a great credit to the town."

The huge block was hailed as a blueprint for town centre living when it was erected in the 1967 but structural problems and a leaking roof meant that the council decided to raze the building and replace it with a blend of affordable homes and council run housing schemes.

Residents voted last year in favour of pulling the block down. A council spokesman said work to demolish the flats would be complete within around six months. He said: "The last family is due to move out very shortly and wWe hope to hand the property over to the demolition firm at the start of next month.

"It's a 24 week contract and it's unlikely that people will notice much difference in the first few weeks.

"They will be disconnecting supplies and making sure it's safe to come down before they start the dismantling.

"It will be a gradual process rather than any sort of large explosion."