A retired businessman has pledged to renovate an eyesore York property he owns that has been occupied by squatters - but says the group of protesters must leave at once.

Peter Walker, who formerly worked in the building trade, told the Evening Press that he hoped to bring his former home, a terraced building in Holgate Road, back in to use within a year.

He has applied to York County Court to regain possession of the listed building, which has been empty for more than a decade and was occupied by squatters three weeks ago. But the protesters, some of whom were evicted from the White Swan Hotel, Piccadilly, last month, have vowed to fight his plans in court.

Meanwhile another group of squatters, at the Gimcrack Hotel, Fulford Road, have not received any legal notices and said they had no immediate plans to leave.

Mr Walker, who now lives in Bristol, said he was concerned further damage had been caused to the building, which he said was without water, gas and electricity and unfit for habitation.

He said: "It's unfortunate that it's been empty for so long and I'm sorry for York and the neighbours, but I want to put that right now, as long as the court situation resolves quickly."

Mr Walker claims the group forced entry to the house, which he bought in 1977, by breaking down a rear door and had since caused "some nuisance" to neighbours.

Squatter Dizzy Smith, 20, said the group of six people staying at the property would dispute his claims in court on Friday.

He said: "We did not break and enter and we certainly have not created any damage. In fact we're planning to repaint some of the woodwork and have already cleared the garden and path of rubbish.We would like to speak to the owner and we're quite prepared to offer him rent while we do some work and restoration here ourselves."

Mr Walker said he couldn't accept rent as the building needed construction work on a rear extension, as well as rewiring, new plumbing and repairs to the roof.

He said: "It's quite impossible to have anybody in there, even in a rent situation, because they would want repairs done and running repairs are not an option, it needs a major overhaul."

A judge at York County Court, Piccadilly, is due to hear the case at 10.30am tomorrow.

Updated: 10:51 Thursday, June 19, 2003