Fresh plans are expected to be submitted for new homes at Warbreck Gardens in North Shore following the collapse of the original developer.
As revealed in The Gazette last week, residents are fed up living with abandoned houses on their doorstep after the original house-builder Chelford Properties Ltd went into administration and failed to complete the estate.
Neighbours say five empty homes are a magnet for vandals, arsonists and thieves.
But Claremont ward councillor Ivan Taylor said: “We are awaiting a new developer to submit a planning application.
“The council has agreed to under-write a rent-to-buy scheme so the situation will be resolved.”
The planning application is expected to set out proposals for 44 two- and three-bedroom houses that buyers can rent for the first two years, with the rent saved for them to use as a deposit, so they can then purchase the property outright.
Blackpool Council has agreed to back the investment by agreeing to under-write the rent for the first two years.
A report to councillors says: “The benefits to the council are 44 new houses are built on a site that has been stalled for years and local buyers are assisted in getting the deposit together that they need to get a mortgage.”
The collapse of Chelford Properties in June last year, has also left the council out of pocket to the tune of around £300,000 in relation to another Chelford scheme on land off Ryscar Way in Bispham.
It was part of a condition of the planning permission for the developer to pay a commuted sum towards affordable housing.
A new developer Applethwaite Homes has taken on that site, and is also expected to submit a new planning application for the land.