WORK is to start on a controversial housing development which has been taken over by a national construction company.

Persimmon Homes, one of the country's leading builders, has bought land on the outskirts of Shildon earmarked for 270 houses.

The company acquired the site from Theakston Estates, which acquired planning consent to develop land to the east of Spout Lane two years ago.

The construction of homes will be the first of three phases of development, which will include part demolition of an industrial estate and improved access to Locomotion: The National Railway Museum at Shildon.

Theakston Estates has also released nine hectares of farmland between the town and Middridge village to North-East Community Forests.

The regional charity aims to improve quality of life for people in urban areas by increasing access to woodlands and green spaces to benefit their emotional, physical and mental health.

It is expected to go ahead with the proposed scheme to create community land with public art, play areas, leisure and horse trails.

Part of the former Direct Worktops factory, on the George Reynolds Industrial Estate, will be demolished to provide a landscaped buffer zone.

Sedgefield Borough Council planners believe the project will help to meet housing requirements for the community and will deliver access by public transport to jobs, education and health centres, shopping, leisure and local services.

Residents from Middridge and Shildon fought the plans when they were unveiled in 2004.

People said that the communities would lose their identities as the development closes the gap between the two and feared the extra homes could create traffic chaos.

They also objected to the development of open space - though as previously farmed land it is classified as brownfield, thus suitable for development.

After a series of public meetings, the borough council's development control committee approved the plans, but had to refer them to the Government's regional office as they fell outside the local plan.

The Government Office North East backed the scheme, believing it will improve people's quality of life and turned down calls for a public inquiry.