Town hall chiefs have agreed to underwrite a housing scheme in a bid to kickstart investment.
The residential development site at Warbreck Gardens, in Blackpool, is being sold by administrators after Chelford Homes went into administration.
The purchaser plans to build up to 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, and then purchase outright.
Blackpool Council has agreed to back the investment by agreeing to underwrite the rent for the first two years.
A report to councillors says: “The benefits to the council are that 44 new houses are built on a site that has been stalled for several years and that local buyers are assisted in getting the deposit together that they need to get a mortgage.”
The Warbreck Gardens development started around 2006 on the site of the former abattoir on Cooper’s Way, close to the junction of Talbot Road and Devonshire Road.
The original plans were for a mixture of houses and flats, but only part of the development was ever built as house prices started to fall and Chelford Homes went into administration.
The report adds: “The delivery of new – build homes in Blackpool has dropped significantly in the last five years or so, with falling prices and the lack of availability of mortgages creating a challenging environment difficult for developers and buyers.”