A FIRE damaged house seized by the council over unpaid debts has been returned to its original owners...after failed attempts to sell it off for half a million pounds.

The five-bedroom house, in May Avenue, Canvey, was repossessed by Castle Point Council in December 2014 following a court order over a council tax debt.

The authority unsuccessfully took the property to auction last month, with a guide price of £450,000.

However, the Echo can now reveal that the council has reached an agreement with the owners over the debt. A spokesman refused to reveal how much money was owed and how much has been paid.

The house, which has a collapsed ceiling, boarded up ceilings and trashed furniture scattered across rooms, is no longer available on online estate agents.

A spokesman for Dedman Gray, which was auctioning the property, said: “The council and the former owner came to an agreement over the debts and the house has been returned to the former owners.”

There were doubts from residents that the property would sell at the asking price due to its poor state.

Canvey town councillor Barry Campagna said: “It has been empty for years and people were breaking into it.

“Hopefully now the owners have taken it back something will be done for it.

“Noone wants to see a house looking like that near their properties.

“It will be a lot better for the people who live near by.”

Due to the damage, potential buyers were not allowed inside the property.

The Dedman Gray listing read: “The house has been subject to a fire and has considerable damage caused by the fire, smoke and subsequent vandalism.

“The property is in need of total refurbishment and once completed will restore this property once again to a lovely family home. The property is situated within walking distance of the Esplanade and local facilities.”

The auctioneers insist they had a lot of interest in the house before it was taken off market.

A spokesman for Castle Point Council said: “I am pleased to say that the money owed to the council have been paid and legal action has ceased.”