City to repay homes profit

Lancaster City Council must pay back £34,000 because the former owners of three homes were not well advised, the local government ombudsman has said.

Jerry White argued that the council failed to properly advise owners on their rights before they agreed to sell their homes to be demolished for parking space.

The council sold the properties to a housing association at a higher price after learning that it could not cover regeneration costs.

White called on the council to pay 75 per cent of the profit to each household and make home loss payments to one owner's children.

The council's corporate director Peter Loker said the cabinet would decide what action to take to ensure that this does not happen again.

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