A DERELICT estate in Bishopston is set to be demolished to make room for new homes.

Bristol Community Housing Foundation is working to transform houses at 148-156 Pig Sty Hill.

It stepped in to redevelop the site as 24 affordable homes for rent and sale. Demolition is under way and the three-bed town houses and flats will be ready by early in 2013.

Director Allister Young said: "Being locally based and independent means we are able to offer a personalised service to our future residents. We are using local architects and contractors so we can make sure our investment also helps the local economy."

Pig Sty Hill was once the home for several thriving shops but over the years has fallen into decline.

Una Coleman, 90, grew up in the area and now lives in the Oaks, which overlooks the site.

She said: " I remember Pig Sty Hill when it was a thriving community. In those days everyone shopped locally because there were no cars. I am so pleased that something is being done about the site. It's so sad to see it neglected for so long and now it will give young families a chance to get a home in the area again."