PENSIONERS living in a Worcestershire sheltered housing complex are celebrating the New Year with the news that their homes have been saved from demolition.

A brighter 2002 is guaranteed at Heaton House, Martley, near Worcester, thanks to a 30-year business plan thrashed out by owners the Elgar Housing Association.

Elderly residents were outraged by suggestions that the bedsits and one-bedroom flats would be demolished and replaced by 11 bungalows in order to save cash.

They were also worried that flattening the homes to make way for family housing would mean they had to find somewhere else to live.

However, following an executive board meeting and a series of talks with an action group that included doctors, nurses and residents' relatives, Elgar finance chiefs have created a viable alternative.

One wing of the scheme will be demolished and another partly knocked down and replaced by four two-bedroom sheltered bungalows.

The community hall and lounge, that were central to the scheme, will also be saved and upgraded so that residents' activities can continue.

Sixteen one-bedroom flats will be retained and modernised.

"We couldn't get people to move into Heaton House - particularly into the bedsits that had been seen as ideal and attractive accommodation when the scheme was built," said Claire Huyton, the housing association's executive director.

"Thirty years down the line they simply don't provide the accommodation that active, elderly people aspire to."

She said she hoped the solution would meet the needs of current and future occupants.

Bruce McGahan, whose mother-in-law has lived at Heaton House for the past 14 months, hailed the decision as "great news".

"At last people have listened to a great deal of common sense," he said.

"People on both sides are happy with the outcome and I feel the best result has been achieved."