Bulldozers have moved in to demolish the headquarters of a housing association.

The concrete-panelled building, belonging to Coast and Country Housing in Redcar and which dates from the early 1960s, is making way for a new two-storey office block on the same site which will be twice as big and spacious enough to accommodate 209 members of staff.

Building Services Provider Rok signed a Partnering Charter with Coast and Country at the launch of the £2.5million construction project last month, and temporary office accommodation has been fitted out for staff and tenants while work goes on.

The site should be cleared ready for the next phase of construction within the next week.

Jack Hurst, property services manager for Coast and Country, said: "Unfortunately our old HQ was too cramped and dated, and no longer met modern office requirements. The new offices will offer a much more pleasant environment for staff and visitors. It will also have a positive impact on the Ennis Square shopping parade."

Coast and Country was formed in July 2002 in Tees Valley's biggest ever homes transfer from Redcar and Cleveland Borough Council. The company is planning to invest £198million in its houses over the next six years.