A MAJOR regeneration scheme has taken a significant step forward.

Coast and Country Housing has been granted permission for plans to breathe new life into an estate in Redcar.

More than £20m is to be invested in transforming the former Blayberry/Burnmoor area, which has been renamed Steeple Chase.

The plan is to build 178 houses and 12 apartments together with community facilities, parking and green public spaces.

Iain Sim, Coast & Country chief executive, said: "We have worked hard with the community to devise a housing scheme fit for the 21st century.

"The regeneration of this estate was badly needed as the quality of the housing was way below todays accepted standards and the estate layout doesnt meet the requirements of modern day living.

"Planning approval marks a significant milestone for the project and we can now concentrate on providing high qualify, low maintenance, energy efficient and excellently designed homes."

The firm has already spent more than £5m preparing the site and a further £16m will be invested in the new development, supported by the Homes and Communities Agency.

Earlier this year Coast & Country announced Keepmoat, a community regeneration and affordable housing specialist, had been chosen as the developer for the project.

David Blunt, chief executive of Keepmoat, which specialises in reviving communities and securing a more sustainable future for local people, said: "The complete redevelopment of the estate will bring benefits for local residents, as well as the town in general, by providing high quality, environmentally-friendly, affordable homes."

Ward councillor for the area, Councillor John Hannon said that many of the original residents have obviously left the area but the development has the potential to be a show piece for the town.

He said: "There was some reservations from local people but many of those have been allayed and people are looking forward to the work beginning because there is obviously a shortage of affordable housing.

"Its going to be good for the area and the plans for the houses look like they are going to be more than adequate. It is going to be a show piece housing development."

The project will be developed in stages with the first phase of building work due to start in September.