A CONDEMNED house in an otherwise picturesque Fingal street has been labelled a major health concern by nearby residents who are desperate for action.

The house at 6 Lagoon Rd lies in ruin, with doors missing and windows broken. Piles of rubbish surround the house, spilling onto the streets at the front and rear of the property.

Neighbours have also reported squatters living in the derelict house.

The property is owned by the Tweed Aboriginal Co-operative Society and office manager Desrae Rotumah confirmed this week the house had been condemned but she was unaware of anyone living at the address.

"We go over there during the day and there's never anyone there,” she said.

"We're aware that there is an issue and we're trying to do the right thing. We're working with the Tweed Shire Council.

"It's being cleaned up.”

Residents however said they had little confidence that anything would change after months of inaction.

"We're aware that they (the owners) have been in contact with council for some months,” one resident said.

"Many of us have also approached council but this rubbish is still in the street. The build-up of garbage and rubbish is growing daily. The inaction is beyond comprehension. It's a major health issue.”

Residents have also expressed concern about the activities of those squatting at the property.

"There was a stage there were some very undesirable people,” the resident said.

"There are women in the street who won't walk past the house. They feel threatened.”

Ms Rotumah said a decision had been made to level the condemned property but could not provide a definite timeline.

"As soon as we get the rubbish cleaned up, which shouldn't be too long,” she said.

"The short-term plan is as soon as we can get the rubbish cleaned up then the building will go too.

"It's full of asbestos and not worth keeping. The board has decided it'll have to come down.”

Tweed Shire Council confirmed it was working with the co-operative in a bid to resolve the issues.

"The neighbours have been kept informed throughout the process and council requests their further patience while this matter is worked through,” a council spokesman said.

Ms Rotumah said she was not aware of what the co-operative's board's long-term plans for the block were.

"I don't know what they have planned, if they are going to rebuild or not,” she said.

"They've had people interested in buying it but I don't know if they are considering selling it.'

The neighbouring property is currently listed for sale with a price guide from $1.425million to $1.495million.