Plans for the redevelopment of Moat Brae House in Dumfries, which is said to have provided the inspiration for Peter Pan, remain 'on track', according to the Loreburn Housing Association (LHA).

The association had announced that it planned to demolish parts of the building in danger of "imminent collapse" as part of wider proposals to establish a new Peter Pan visitor centre and sheltered accommodation for the elderly. However, the LHA plans encountered strong opposition from the Peter Pan Moat Brae Trust (PPMBT), which disputes claims that the building poses a danger to the public and is now seeking to acquire the property from the housing association.

The trust, which aims to restore Moat Brae house and gardens for public use, has been in talks with LHA over the future of the property, and had secured a temporary court injunction, an Interim Interdict, to prevent the housing association from demolishing the building. However, the interdict has since been lifted, although LHA has now said that it will not pursue any demolition work without the support of Dumfries and Galloway Council.

LHA chief executive Ahsan Khan said: "I would like to stress that Loreburn clearly never had any intention to move forward without the confirmation of our partners in the local authority that we were acting with their support and in the interests of public safety. "By the end of August we will have a clearer picture of the future for the site. It is important to stress that Loreburn's voluntary Management Committee remains committed to marking the birthplace of Peter Pan on a site that had remained entirely ignored and left to rot for over a decade prior to Loreburn's interest."

In a statement, PPMBT said that it now plans to launch a fund-raising campaign in order to obtain the necessary finance to acquire the building, as well as to fund emergency repair work.