DEVASTATED pensioners could be moved out of their sheltered homes because their owners want to save money.

Residents of Martley's Heaton House are in shock after hearing Elgar Housing Association's proposal.

"This is a slap in the face to all the elderly tenants," said Bruce McGahan, whose 83-year-old mother-in-law has lived there since August. "The residents were told Heaton House was no longer a viable entity."

He said Elgar had come up with a number of proposals, one of which was to "knock it all down and build 20 bungalows".

"They told us the residents would have first refusal but couldn't tell us where they'd live during the work. It's appalling.

"Most have invested money in their flats. They don't want to move."

Margaret Wall, aged 63, has lived in the flats for two years, but some neighbours have been there since the early 80s.

"I'm one of the younger ones," she said. "Some are 92 and 94. It's been a terrible shock. It's bad enough for me, but it'll kill the older ones."

A spokeswoman for Elgar, which took Heaton House over in 1995, confirmed consultation was underway and said the association would pursue a policy of "openness".

Bosses are holding a meeting with the residents and parish council on Wednesday at 2pm.

"It's only fair that, if we're looking at the options available, we talk to the tenants first," said the spokeswoman, who added that the size of the flats made them "difficult to let".

"If a decision's made to demolish, tenants will be offered quality, alternative accommodation.

"But we reiterate that we're looking at a number of options."

The average time to re-let flats at Heaton House was 32.4 weeks last year compared with 4.95 elsewhere.

"We're not a profit-making organisation," said an Elgar spokesman.

"But our revenue's calculated on the basis that Heaton House is full, and it's not. On that basis, it's losing money and other residents in other schemes have to pick up the tab."