Ruth Kelly backed the inspector's findings

A public inquiry found Blackburn with Darwen Borough Council did not make a good case for knocking down houses in the Redearth triangle area of Darwen.

More than 80 houses have already been demolished, while 12 remain occupied.

The authority must now negotiate with remaining residents. It says it is "disappointed" with the ruling.

'Weak assessment'

Residents had campaigned vigorously against the Compulsory Purchase Orders (CPOs) issued as part of the Elevate pathfinder scheme in east Lancashire.

Government planning inspector Richard Ogier agreed with the council that many of the houses were unfit.

But in his report he said the assessment process was flawed and the case for issuing the CPO was "weak".

Local government secretary Ruth Kelly agreed with the inspector's conclusions, ruling that CPO should not be confirmed.

The ruling means the remaining clearance area no longer exists and the council cannot purchase remaining houses without the co-operation of residents.

The remaining clearance area includes Hannah Street, Star Street, Sunnybank Street and Redearth Street in Darwen.

Renewal programme

The area was the site of one of the government's new planned education academies.

Miss Kelly said the decision to cancel the CPO should not prejudice other housing renewal schemes in east Lancashire.

She said there were still "significant problems" posed by old housing stock in the area.

The government wants to demolish large areas of unwanted houses and replace them with a smaller number of homes offering a more attractive mixture of flats and larger houses.

The idea behind the housing renewal programme is to revive the market in run-down areas.

Councillor Mohammed Khan, executive member for housing and neighbourhoods at Blackburn Council, said: "We are pleased that the long-awaited decision has now been made but disappointed that we have lost on one of the issues.

"On the important point as to the condition of the houses we are pleased that he agreed with our assessment that they were unfit and that the academy had no influence over the decision to clear unfit housing.