UP to £2m could be ploughed into Wor-cester's run-down Lowesmoor district under a three-way investment scheme.

Derelict shops and homes may be transformed and families encouraged to live "above the shop" thanks to English Heritage, which prom-ises to give £60,000 over the next three years.

Worcester City Council has pledged to put £80,000 in the pot and wants people who own property in the area, which includes Silver Street and St Martin's Gate, to apply for grants to regenerate the frontages.

Will Scott, the council's principal conservation officer, said he hoped hundreds of people would apply.

With the added investment by owners, he said, a projected £2m could be ploughed into Lowesmoor over the next three years.

"Let's get spending. The money is here and it's the opportunity of a lifetime for the city," said Mr Scott.

"We're encouraging the whole use of buildings too, including residential use.

"We're targeting known owners and putting leaflets through letterboxes in a bid to let everyone know about the scheme.

"It will improve the image of Lowesmoor and attract even more investment."

Owners would be able to replace architectural features such as mouldingsand chimney stacks and install natural roofing materials, he said.

They could apply to have half the cost of repair work paid out of public funds, but would have to fund any infrastructure changes themselves.

A fish and chip shop had already been transformed under the Conservation Partnership Scheme, and plans to restore an old timber-framed building were underway, added Mr Scott.

Developer Chelverton West, which wants to wants to bulldoze all existing premises on Lowesmoor industrial estate except for the former vinegar warehouse in Pheasant Street and the premises of Majestic Wine, is also eligible for a grant.

The firm, which is part-leased by the Australian giant Lend Lease Corporation, hopes to end up with a development worth £40m and is in negotiations with the council.