A HOUSING development is to be built near a multi-million pound railway village.

Councillors have welcomed the plan for 90 houses in Shildon, County Durham.

They see it as another step forward in the regeneration of the town, which is often referred to as the cradle of the railways.

Shildon's new Railway Village is under construction.

Councillor Garry Huntington, the leader of Shildon Town Council, said: "We have been waiting for a housing development of this kind in Shildon for a long time now and it is welcomed by both the town council and residents.''

Plans to build the houses by Broseley Homes were approved by Sedgefield Borough Council last week.

They will be built on land near Redworth Road, Tomlin Street, and South Street, to the west of Scott Street and the Mallards.

The development will include 18 two-bedroomed semi-detached houses, 54 three-bedroomed semi-detached and detached homes and 18 four-bedroomed detached properties.

The borough council is working in partnership with the National Railway Museum, in York, for the Railway Village, which is scheduled to open in Shildon in September.

Covering 600sq metres, the single-storey collections centre will eventually house up to 60 vehicles from the National Railway Museum's collection.

The venture, which will incorporate the former home of pioneering railway engineer Timothy Hackworth, is expected to attract more than 60,000 visitors a year.

Funding has included money from the Heritage Lottery Fund, the European Regional Development Fund and regional development agency One NorthEast, with contributions from Sedgefield Borough Council, the department for Culture, Media and Sport and Northern Rock.