FEARFUL residents whose homes look set to be lost to coastal erosion have welcomed a £1.2m funding package.

A pilot scheme will see East Riding Council buy homes which are likely to disappear into the sea over the next 15 years.

The local authority will then lease the homes back to their owners giving them time and money to plan for a future move.

Peter Johnson, 66, of Aldbrough, is pleased the council has intervened.

He said: "I am seven houses off the cliff edge. There are a lot of people worried about coastal erosion. To go from no help at all last year to this is a hell of a big step."

The funding is coming from the Government Pathfinder scheme, aimed at tackling erosion along the Holderness coast.

Residents believed to be at imminent risk will be offered financial help with demolition and restoration costs, as well as relocation.

And those forced to abandon their homes and move into rented accommodation will get half of their rent paid for the first year.

They will also receive a hardship payment and be offered free second-hand furniture and white goods.

Mr Johnson said: "The people I have spoken to are quite shocked.

"Beforehand, residents would get a council house if they were lucky, but would have to pay to move and demolish their home, which could cost more than £3,000.

"So this is great news and I am very pleased those days are gone."

Residents who live inside or close to the predicted cliff-top erosion line for 2025 will receive an offer on their property from the council.

If a sale is agreed, the council pledges to lease back the property.

Alternatively, homeowners can apply for funding to adapt their properties rather than move out immediately.

The proposals were agreed at East Riding Council's cabinet meeting.

Residents have been told they should not misinterpret the funding as a compensation package.

Councillor Jane Evison said: "We are very pleased to have received the money and will look at innovative schemes to prepare residents for the effects of coastal change.

"It is not a get rich quick scheme for residents and the buy and lease scheme will be based on market value and what needs to be done to the home."

Around 55 homes are estimated to be affected by coastal erosion in the next 15 years.

Beverley and Holderness MP Graham Stuart added: "I understand the Government's reluctance simply to give compensation to homeowners – they knew when they bought their houses that the coast was eroding.

"This will, however, relieve the worry of those affected and allow residents both the time and the cash to make plans for their futures."

East Riding Council is due to meet with residents.

The funding must be spent by March 2011.