A £1.5M contract to upgrade more than 100 homes for the needy in east Durham starts in the new year.

East Durham Homes, the company that assumed responsibility for Easington District Council's housing this year, has chosen three firms to carry out the work.

Officials hope to press ahead with a further five-year housing programme worth £117.5m if the Audit Commission gives the firm a positive inspection in January. Work to upgrade homes in Seaham, Peterlee and Easington Village starts in January.