OXFORD City Council had to pay a battling pensioner £154,000 to leave her Rose Hill home, it emerged last night.

In April, the authority compulsorily purchased Beryl Mitchell’s bungalow in Lambourne Road to clear the way for the city’s first council housing in more than 20 years.

Other residents, who will be rehoused in the £5.8m development, left voluntarily and shared £69,000 compensation.

Mrs Mitchell, who died last month, aged 88, refused to move as surrounding houses were demolished after they were found to be unsafe.

Council spokesman Louisa Dean said: “The council had a duty to rehouse its tenants in suitable alternative accommodation. Because of their condition, the decision was taken to demolish the properties as they became empty. At that point in time, the council had no plans to redevelop the site.”

Ms Dean, who confirmed the amount paid was £154,000, said the decision to build new homes was taken last year, when councils were allowed to apply for National Affordable Housing Programme grants.

She added: “The council carried out the negotiation for the purchase of 6 Lambourne Road within the terms of compulsory possession and as part of the process of site assembly.”