The work on one and two high street is expected to take six months

Buildings in Llandrindod Wells, Powys, will be transformed over the next four years.

A former shop and hotel is the first property under the spotlight with repairs expected to take six months.

Llandrindod was a thriving spa resort in the Victorian era with thousands of people holidaying in the town every year.

The Llandrindod Wells Townscape Heritage Initiative Scheme is jointly funded by the Heritage Lottery Fund, Powys County Council, the Welsh Development Agency (WDA) and Welsh historic monuments body Cadw.

ELIGIBLE STREETS Five Ways High Street Middleton Street Park Crescent Temple Street

Paul Tomlinson, townscape heritage initiative scheme project officer at Powys County Council, said the owners of both private and commercial properties could apply for grant aid.

"Much of Llandrindod Wells was built about 120 years ago with a time span of about 20 to 30 years and now some of the buildings are looking a bit sorry for themselves," Mr Tomlinson said.

"The money will help regenerate the town, but we have to be strict about which properties receive grant aid. They have to be in a defined area of the town centre."

Councillor Gwyn Gwillim, county council board member, said: "It is very good news for the town of Llandrindod Wells and this will be the starting point in restoring this famous spa town to its former glory."

Owners of buildings in the town centre can apply for grants

Applications for restoration grants have to be approved by mid 2007, said the council.

Currently they are available for up to 70% of the cost of repairing the outside or 90% for architectural features such as wooden sash windows, cast iron guttering or the balconies and verandas, once so common in the town.

One and Two High Street was a hotel in Victorian times, later converted into shops. The owners are now transforming the empty property into flats.

Four grants worth �150,000 have been awarded so far with more applications in the pipeline.