THE first stage of a multi-million pound housing masterplan, designed to regenerate struggling communities, has been given the go-ahead.

Cabinet members at Sedgefield Borough Council have approved a redevelopment scheme for a run down area of Ferryhill Station, known as The Rows.

It is part of a wider £56.5m project to breathe new life into the former mining communities of Ferryhill Station, Chilton West and Dean Bank, in Ferryhill.

The council has created a three-phase plan, working with registered social landlord Three Rivers Housing Group, to build new homes and market The Rows site.

Part of the land, including the former Chapel Row, has already been cleared, after the council acquired and demolished properties in 2003.

The first two phases will see 30 homes built for rent, shared ownership and sale.

The partnership approach aims to deliver a better outcome than a purely commercial venture, by putting greater emphasis on high standards of energy efficiency, size and external appearance.

The remaining area, which will form the final phase of the work, is made up of Clive, Wolseley, Trafalgar, Nelson streets and odd-numbered homes in Haig Street.

Some residents still live in those streets, though many properties have already been demolished or are empty, so the council may need to use compulsory purchase orders to buy the remaining occupied houses.

It will then be jointly marketed by Three Rivers and the council for speculative residential development, with profit from the sale of the land shared between the two organisations.

Priority for the new social and affordable houses will go to families relocated as part of this scheme and residents affected by masterplan works in Dean Bank and Chilton West.

A spokesman for the borough council said: "Cabinet approved in principle what is a positive and futuristic approach of the redevelopment of The Rows, in Ferryhill Station.

"The borough council delivered, through its masterplan, the need for considerable redevelopment at Ferryhill Station, Chilton West and Dean Bank.

"This would be the first stage of the redevelopment element, which has been the subject of considerable consultation.