Diggers have moved in to build new homes for a family of badgers saved from slaughter.

Work began this morning to create new setts in the gardens of two couples just metres from the creatures' original home in Saltdean.

Video cameras will monitor the creatures and web cameras may also be installed to see how the animals cope with their new artificial setts.

The unique project will provide a national blueprint for all future problems of badgers causing damage to property.

Designed like log cabins, the two homes will be sectioned into small chambers and set underground.

A network of twisting paths made from flexible pipes will recreate tunnels normally dug by the badgers.

The Saltdean badgers hit the headlines last October when government ministers issued a licence to cull them after residents claimed they were burrowing under their homes and causing structural damage.

The decision by the Department for the Environment, Food and Rural Affairs (Defra) sparked round-the-clock protests by neighbours and animal right's groups.

The licence was suspended and talks began to find another solution.

Penny Lewns of the Badger Consultancy is overseeing the creation of the artificial setts.

She said: "Work is due to finish tomorrow, but the setts must be left for a couple of months to get rid of the human smell before the animals can move in."

One of the couples who have welcomed the badgers into their garden are Richard and Barbara. They asked not to have their surname printed to protect the whereabouts of the sett.

Richard, a retired architect in his late 50s, said: "We want to show badgers can live happily alongside humans. I think people are scared to have them around, but there are so many more solutions than having them killed.

"There has been talk of putting in a web-cam, which would be great.

"We've been here ten years ago and have always enjoyed the badgers' visits.

"Many of our neighbours agree it's a privilege to have them here."

Peanuts and honey will be used to entice the creatures to their new homes.

The tunnels in the old sett will be filled in and the gardens surrounded by badger-proof fences.

Trevor Weeks, of the Saltdean Badger Group, said: "It's good news because the setts are within their home territory. We see badgers with bite wounds from fights over territory.

"However, I'm worried it's being done too quickly. We recommend artificial setts are left for six months before moving animals as they may not take to them if they are too sterile."

The plan for the artificial setts was suggested in a report by Dr Elaine King, chief executive of the National Federation of Badger Groups (NFBG).

She said: "It's a success story. It means the badgers can stay in their territory and local people can still enjoy seeing them, but they won't cause a problem to the neighbours who do not want them.

"It has raised a lot of national issues. It was the first time a license was given to cull badgers and we were worried it would be repeated."

A Defra spokesman said: "Sett construction is exceptionally being funded by Defra as it provides an opportunity to monitor the potential of this technique to solve any future badger damage problems."