BATS have delayed one of the stages of a multi-million pound housing masterplan, designed to regenerate struggling communities.
Councillors have approved plans to regenerate a 1.25 hectare site in Ferryhill Station as part of the third phase of work in the area.
The approval, which is subject to a full ecology report that will be carried out next summer, was granted under exceptional circumstances.
Legislation dictates that the presence of protected species, such as bats, would make development illegal.
However where wider community benefits could be lost, where funding deadlines might be missed, and where vandalism could pose a risk to the bats, it is possible for permission to be granted.
The area in question is known as The Rows and includes five terraces with 65 vacant houses among them.
Redevelopment requires demolition of homes on Nelson, Wolsely Trafalgar, and Clive streets, and the odd numbers of Haig Street.
A spokesman for Sedgefield Borough Council said: "The rows suffer low demand for the poor quality pre-1919 terraced housing as well as high levels of anti-social behaviour, including break-ins and vandalism, which creates the additional risk of fire.
"There are also concerns surrounding the effects of the delay on the health of the remaining residents as the properties suffer from excess cold and dampness which will increase in the winter months."
Granting the planning permission allows progress to be made on negotiations to re-home remaining residents and compulsory purchase orders.
The scheme is part of a £56.5m project which will see extensive redevelopment in three former mining areas.
More than 400 homes will be demolished in Ferryhill Station, Dean Bank and Chilton West over the next ten years.
It is hoped the subsequent development will create confidence in the area, provide suitable homes for the local population and bring back occupants to support local services.
Speaking at a meeting of Sedgefield Borough Council's development control committee Councillor Frank Forrest welcomed the decision.
"If these buildings weren't derelict in the first place then there wouldn't have been any bats in them.
"The fact that recommendations have been made so that progress can be made is good news," he said.
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