A row of shopkeepers in a run-down part of Shrewsbury have been told to leave their premises within six months to make way for a £5 million housing regeneration scheme.

The three shopkeepers in Moston Road, Sundorne, have been asked to leave by August 31 so a project by Severnside Housing and Shrewsbury and Atcham Borough Council to revamp the area can go ahead.

Proposals include the development of 40 affordable homes and Severnside says it will be a major boost for families.

Compensation packages will be offered to the shop owners of the businesses which include a fish and chip shop, hairdressers and a food and wine store.

Matthew Spittles, executive director for asset management at Severnside, said: “Following three stages of public consultation, the feedback from the majority of residents at Moston Road was that they did not want the shops to be replaced as part of the new scheme.

This was due to concerns about the shops attracting anti-social behaviour but there are also concerns about future sustainability.

“We recognise that the plans affect the livelihoods of the three shopkeepers and we are committed to working with them through the process.

“I met with them individually following the consultation to explain the next steps, and to say that this would include serving notices to terminate the leases, and have offered to meet them again if they wish. All three shopkeepers are being offered a compensation package based on their length of tenure.

“We have also said we will look at other vacant premises owned by Severnside if they are interested in relocating.”

Mr Spittles said they aimed to start work on the first phase in February 2009.