THE owners of a derelict, abandoned house have failed to fix the massive hazard which has neighbours in fear for their safety.

The Livingstone Shire Council is now looking into its legal options to deal with the heavily cyclone-ravaged home on the corner of Ben and Braithwaite streets, Yeppoon.

The two-storey building was torn apart during Cyclone Marcia in 2015, and has since become a health and safety hazard housing vermin, overgrown plants and exposed asbestos walls.

Neighbours submitted a 75-person signature petition to the Livingstone Shire Council in May this year, but there has been little progress since.

"As a result of the second Show Cause notice issued to the property owners in April, council has been in negotiations with their legal representatives," a council spokesperson said.

"Those negotiations have reached an impasse and council is now looking at its legal options."

Owners Karl and Tessa Maskery were inside the home when Cyclone Marcia stripped it of its external features.

After the event, images of the couple in front of their ruined home, dubbed the "Dollhouse", were splashed across national media.

It has since continued to fall into disrepair, and Livingstone shire mayor Bill Ludwig is among those who share Ben St residents' frustration and belief it should be demolished.

But he explained complications in relation to ownership and the legal process meant the decrepit building remained.

"The owner still owns it, and we are going through the Show Cause process," Cr Ludwig said this morning.

"We have given him the official notice that he has got to make the necessary repairs to make it safe.

"Unfortunately we can only go through the statutory processes which we are bound to follow by law.

"When we did that originally he asked for more time which we gave him.

"It's been a fairly complex on and one we are very keen on having resolved."

Residents have expressed grave concern for school children's safety as overgrown lawns often forced them to walk on the busy streets to and from school.

Cr Ludwig had requested the Parks department assist with mowing the overgrown footpath.

Ben St residents Noel and Marlene Sorensen are confronted with the unsightly house every time they look outside, and fear if the owner doesn't tear it down, a weather event soon might.

In May, they told of rats and mice getting into neighbouring homes and feared theirs could be next.

Council confirmed there has been no further contact with neighbouring properties since the petition was submitted.

The Maskerys could not be contacted for comment today.