NEW affordable homes are set to take the place of a former sheltered housing scheme in Norton.

The disused Albany House, in Berkshire Road, will make way for the homes under a partnership between Stockton Council and the Tees Valley Housing Group. Construction could begin next summer.

A council spokeswoman said an evaluation of local housing needs was under way to help decide the tenure and mix of new properties on the site - expected to be between ten and 14 homes. Ward councillors would be closely involved.

The final shape of the scheme would also depend on a forthcoming bid for Housing Corporation funding, which would determine whether it would be mostly affordable rented housing, or a mix of affordable homes for sale or shared ownership.

Contingency plans would also be developed to allow the work to go ahead even if the funding bid did not succeed, possibly by investing the Tees Valley Housing Group's own finance.

Built in 1971, the 20 bedsits in Albany House have shared bath and shower facilities, making them difficult to let. The last residents moved out 12 months ago.

Refurbishment costs make demolition and new build the most viable option.

Coun Martyn Ingram, cabinet member for housing and community safety, said: "This redevelopment will help meet the housing needs of the growing list of people who urgently need homes.

"We are strongly committed to meeting this need and I am delighted that we will be working to achieve that with the Tees Valley Housing Group - a local and well-respected social landlord with considerable experience in developing this type of housing.

"Very positive discussions with the Housing Corporation have encouraged us to work up this proposal in partnership with the Tees Valley Housing Group."

The partnership will submit a formal bid to the Housing Corporation early next year and, if this succeeds, hopes to start the development next summer.

Martin Hawthorne, director of development for Tees Valley Housing Group, said: "We are delighted to be working in partnership with the council.

"Together, we hope to remove the old eyesore of a building and redevelop the site to the benefit of the whole community."