Government last night reached a compromise with the families squatting at The Cottage in Dockyard.

They had moved there after their rented West End Development Corporation (Wedco) homes had roofs damaged in Hurricane Fabian and alternative homes offered to them also suffered major leaks.

But last night Wedco said the families had agreed to move to those alternatives at the end of the week.

Debbie Bean, who had been squatting with her children and father, said: "We spoke with (Housing Minister) Terry Lister. He's agreed to give us time here until they get those places fixed up so we can move in."

She will move to a three-bedroom house in nearby Prince Alfred Terrace while neighbour Ray Crofton has been offered a cottage elsewhere.

Wedco plans to knock down their terraced homes at Lodge Point and rebuild it.

"As we were the previous tenants we will get first preference to keep our place at Lodge Point," said Ms Bean. "In all, that is reasonable."

A statement released by Wedco said: "The West End Development Corporation, in reaching an amicable agreement with the aforementioned residents, anticipates having possession of The Cottage by the end of the week."

Their eviction from the plush former Governor's home had been scheduled for Monday night and then delayed.