OLD wards at Blackburn Royal Infirmary could become executive apartments under plans to breathe new life into the area.

And canal-side homes could also spring up on a nearby site as council bosses look to use government money to kick-start the area's housing market.

Victorian parts of the Infirmary would be kept up and converted into flats, while newer, less attractive extensions, which have sprung up over the last century, would be torn down and replaced with so-called affordable housing.

The idea has been suggested to residents in the Infirmary area of Blackburn, who have welcomed the plan.

The services currently supplied to patients at the Infirmary are due to move to Queen's Park Hospital in 2006, once a £90million single-site expansion project is completed.

That will leave a large site right at the heart of one of Blackburn's 'Housing Market Renewal' areas prime to redevelopment and officers believe creating flats in the hospital would kick-start the housing economy.

The site is earmarked for 'primary housing development' within the council's Local Plan, which sets out uses for every piece of land in the borough.

And Coun Andy Kay, in charge of regeneration at Blackburn with Darwen, said: "Using the hospital buildings for flats is one of several options. Its potential uses are limited, you certainly couldn't create industrial units in the heart of the area.

"The important thing is that whatever we do improves the area, makes it more attractive and is good for the people who live there.

"It is an historic building which does present a variety of options to do something unique."

The council also hopes to develop land around the Leeds and Liverpool Canal in the area to provide canal-side housing. It has already been developed in other parts of the borough and the council believes it can persuade developers to work on 'affordable housing' if the possibility to build more expensive housing is there as well.

The hospital currently owns the land.

Brian Booth, vice chair of Ivy Street Community Association, said: "Residents have said very forcefully that they want to see the site used for housing and we will keep campaigning for that to be what happens.

"It was brought up at a public meeting with MP Jack Straw and at other residents' meetings, but we need the health authority to be happy to do that.

"But it's really important that the housing is affordable. If they are looking at building things in the eighty thousand pounds bracket then that's not what is needed and they are looking at the wrong area.

"We want real people to be able to afford to move into these homes."

Director of Operations for East Lancashire Hospitals Trust John Dell, said: "Over time, the Trusts Estates Department will liaise with the council about the disposal of the property."