Britain is on the brink of the biggest mass demolition since the slum clearances of the 1960s as part of the government’s multi-billion pound housing strategy.

As he prepares to build over large swathes of the South East to provide new homes, Deputy Prime Minister John Prescott’s vision for improving blighted communities across the North of England includes taking a wrecking ball to more than 200, 000 Victorian terraced houses.

Knocking down old to build new will cost billions of pounds of public money – so would it be cheaper, and more environmentally friendly, to restore them instead?

In thistwo-part Tonight special, surveyors, architects and builders are given a challenge to make a house, earmarked for demolition, habitable again for £18,000 – roughly the price of tearing it down and less than a third of the cost of constructinga new one.

The programme also talks to those in favour of the government’s House Market Renewal Initiative as well as the critics who believe its Pathfinder projects aimed at reviving rundown areas of northern cities such as Liverpool, Manchester and Newcastle risk repeating the mistakes made by planners in the 1960s.

The property Tonight is refurbishing is in Liverpool, where 20, 000 homes – more than were destroyed by Hitler’s Luftwaffe – are due to come down under the proposals. And it is in a poor state of repair after lying empty for a decade.

It is one of 450 similar houses to be bulldozed as eight streets disappear from the Dingle, a close-knit community with strong links to Liverpool’s cultural history. Beatles drummer Ringo Starr was born there and the area originally housed workers who built much of the city’s famous Victorian architecture before becoming home to thousands of dockers during the city’s industrial heyday.

Fed up with the current state of their community, many residents support the plans, which include restoring properties as well as knocking them down. But, the proposals also threaten many arguably historic houses with demolition - replacing Victorian villas with modern buildings – leading to a groundswell of protest from locals keen to preserve Liverpool’s civic heritage.

Merseyside Historian Laurence Westgaph tells the programme: “A lot of people think because we have a glut of these types of houses that’s a reason for them to be to be demolished but one of the things Liverpool’s most proud of is that we have more listed buildings of any city outside of London so it seems ridiculous to knock down this type of build quality.

“These houses need to be saved as a legacy for future generations and to show people that…in order to improve communities you don’t have to destroy them. The idea of regeneration being created by destruction seems ridiculous.”

The local authority deems the houses, many of which are neglected or abandoned, unfit for human habitation and claims there is no demand for them.

But English Heritage, which has criticised the government’s plans, estimates that over a 30 year period it is between 40 and 60 per cent cheaper to refurbish these types of houses in the North West than to replace them with new build.

In the first part, Julia Kendell, a leading designer specialising in restoring old properties, faces up to the challenge of returning the three-bedroom terrace to its former glory.

Surveyor John Topp assesses the full scale of the task while the owner, who was born in the front room during the war, returns for one last look before the transformation begins.

The property retains many of its original features, but is riddled with damp and has no inside bathroom or central heating. Further inspection reveals crumbling windows, a God-forsaken kitchen, an outdoor toilet and a collapsed wall.

Despite its list of problems, Julia remains upbeat, telling the programme: “With some vision and creative thinking it’s actually very easy to bring older properties bang up to date for modern comfortable living whilst still maintaining the essential essence and spirit of the building.”

But can they turn the property into an attractive proposition for just £18, 000?

The results of their efforts are revealed in the second part of the programme.

Press contact:Grant Cunningham at ITV on 0161 827 2456

Pictures:David Crook at ITV on 0161 827 2361