AFTER lengthy negotiations and months of planning contracts have been signed to set in motion work to transform the fortunes of a north Durham village that has suffered years of neglect.

Later this month, demolition will begin as developers prepare for the first of three phases of the Pelton Fell Project, in the village near Chester-le-Street.

When completed, there will be 150 houses for sale and 91 available for affordable rent and shared ownership.

A redevelopment is being carried out with Bellway Homes, the Nomad Housing Group and Durham Aged Mineworkers' Homes Association.

It will also provide local employment opportunities and a new custom-built resource centre.

Project manager Mark Teasdale said: "The first phase will comprise the demolition of 77 properties on the eastern half of Whitehills Crescent.

"Running parallel to the housing development are improvements to the Poet's Estate, with Chester-le-Street District Council agreeing to an £850,000 budget to be spent over the next three years to improve public areas, parks and connections to the rest of Pelton Fell.

"One of the key things about the redevelopment of Whitehills Estate is that social housing will be pepperpotted between private homes, rather than being set aside and isolated.

"All the homes will be built to the same specifications, so that if you walk through the estate you will be unable to tell one from the other. We are trying to create a sustainable and vibrant community."

Nomad Housing development director Ian Prescott said: "This is a radical and complete regeneration of a community. It is not just about rehousing existing tenants.

"It is about giving them the opportunity to be part of what will be a high-quality private estate and giving them a holding stake; and it's about the regeneration of the social infrastructure and economic activity.

Mr Prescott said the affordable housing would comprise 53 homes, 16 of which could be bought under shared ownership deal.

He said the house would provide for all existing council tenants who wished to remain part of the estate.

The Durham Aged Mineworkers' Homes Association will have 38 bungalows grouped in clusters around the estate - about ten will be available for people from the district council's waiting list.

Developers will also help meet the capital costs of a new resource centre, which could feature a range of facilities including IT suites and an outdoor multi-use games area.

Community Resource Centre steering group chairman Colin Reynolds, said: "We wanted to get involved at the design stage.

"Chester-le-Street District Council has agreed to fund a preliminary design study, which went out to tender.

"Local architects Mosedale Gillat together with Bands of the Wear Community Projects have now been appointed to lead a feasibility study.

"We will be seeking the views of all residents over the next few months to draw up a design for a site yet to be identified.

"We are looking for something that will serve our requirements for the next 30 years. Something the community can be proud of."

The development will also provide opportunities for local youths aged 16 to 18 who are interested in a job in the building industry. Carillion will provide 24 on-site placements, with two years' training ending in NVQ qualifications in bricklaying, joinery, painting and decorating.

Eighteen home owners will be affected by the three phases of the project and negotiatons have taken place over the future of their properties.

Mr Teasdale said: "We said early we would negotiate with them to buy their houses rather than go down the route of compulsory purchase orders.

"Most have agreed to a generous package that helps with relocation and offers a sizeable discount."

Mr Teasdale said four families were not leaving their homes and they would be accommodated with builders constructing around their homes.

Building work is is expected to begin in June with the first homes ready to move into in November or December.

Ward Councillor Stephen Barr said: "Pelton Fell has fallen into decline over the years. I think is the best opportunity Pelton Fell is going to have for regeneration.

"My role as district councillor is to work with all partners to make sure we maximise those opportunities and potential for regeneration."

The consortium hopes to form a neighbourhood regeneration company when the building is finished which will help residents access grants and employment.