Thirteen houses on the former Vosper Thornycroft shipyard in Portchester, which have been empty for more than two years, are to be renovated and then run by Portsmouth Housing Association.

Much of the shipyard had been tied up in a massive planning application by George Wimpey for 166 new properties – but the application was withdrawn in April after months of wrangling with the Environment Agen-cy and Highways Agency.

The properties in Southampton Road and Hamilton Road on the border of Portsmouth and Fareham boroughs have been hit by arson, vandalism and theft.

But renovation work is expected to begin this month and will be funded by an empty property grant from the council, matched by an investment from landowner Trafalgar Wharf.

David James, of Southampton Road, said: 'We have lived here for 30 years and this used to be a lovely place but the last few years have been a nightmare.'

Steve Webb, of nearby Hamilton Road, said: 'Living next door to these empty properties has been a nightmare.

'There has been endless anti-social behaviour and even arson. It has been a terrible worry.'

Trafalgar Wharf Ltd recently acquired the shipyard and intends to regenerate the area for business

Jonny Boys, managing director of the firm, said: 'We contacted the council to find out if they could help bring them back into use.'

The housing association will lease the properties as affordable homes.