Town hall planners today unveiled drastic measures to revive the Foxhall area of the resort.

These include demolishing tatty guest houses – many of which are already boarded up – to make way for up to 400 new homes stretching from Seasiders Way to the Prom.

The plans are centred on Tyldesley Road which a council report states has declined to such an extent it is "beyond the point at which it can sustain a viable holiday area."

If the plan, today described as "vital" by many local residents, wins Government approval and the funding is secured the area could be transformed within five years.

Coun Maxine Callow, cabinet member for tourism and regeneration, said: "Foxhall is traditionally one of the resort neighbourhoods where hotels and guesthouses have dominated land use.

"But we are looking to create a new vision which would see a residential neighbourhood created in Tyldesley Road and the adjacent streets. Guest houses and properties would be bought up and the area would be cleared and redeveloped, subject to the plan going through and funding being given to Blackpool by the Homes and Communities Agency."

The details are revealed in the Foxhall Area Action Plan which is due to be agreed by the council's executive tonight.

The blueprint, which would use the £35m pledged by Government in the Blackpool Task Force report, also includes a proposal to create a new Conservation Area to preserve Foxhall village, the emergence of Foxhall Square as a pedestrian-friendly zone, and residential apartments in Manchester Square.

But the main thrust would be around Tyldesley Road and the adjacent streets.

Regeneration firm ReBlackpool is already negotiating to buy the gas works site between Blundell Street and Seasiders Way.

Coun Callow added: "There is £35m allocated to Blackpool but we have to produce a viable scheme. Change has to be on a big enough scale to make redevelopment worthwhile and make this area an attractive place for people to live.

"Up to 400 houses and apartments could be built, of which the majority would be family housing. We want to see a degree of affordable housing so there would be some properties to be sold on a shared ownership basis in order to make the homes very accessible to local people."

A number of properties on Tyldesley Road have ceased trading in recent times. These include The Saville Hotel which closed after a fire and is now subject to a planning application for demolition and replacement with apartments.

Last month, the council closed down a hotel on Tyldesley Road which was being illegally used as a hostel.

Neil Winkley, chairman of the Foxhall Village Regeneration Association, said: "We've had a lot of plans put forward for Foxhall and it's time we saw some action now. Regarding the Tyldesley Road area, the reality is that something has to be done there and if that means dramatic measures, that's fine.

"There are some properties there which are in decline, but some people have pumped a lot of money into hotels on Tyldesley Road so they would have to be compensated.

"People need to make sure they take part in the consultation and that their voices are heard."

n A public exhibition of the plans takes place at the Philharmonic Club, Princess Street, tomorrow and Friday 10am to 6pm and on Saturday 9am to noon. Public consultation runs until August 31.