Salford council and developer Countryside Properties have hit back against a leaflet campaign that suggested they were planning to demolish council homes and replace them with private housing.

Fears were raised by a residents’ group in the Lower Broughton area, which printed a leaflet claiming Spike Island council estate was to be levelled to make way for luxury flats as part of the Manchester Salford market renewal pathfinder.

Locals were so concerned by the allegation that a public meeting scheduled for 8 February to discuss the plans had to be called off for safety reasons when more than 300 people tried to attend.

Liberal Democrat councillors have joined the fray, accusing the Labour administration of keeping residents in the dark over its plans. But the claims have been dismissed as “absolute nonsense” by John Merry, the council leader.

He said: “We have always said that where [having to move home] is a possibility, residents will only be relocated if their new home is better than [the one] they leave – and only then with their agreement.”

The council and Countryside Properties are in the early stages of regeneration plans that will involve about 3000 new homes in the area.