HOUSEBUILDER Dunelm (Castle Homes) is looking to continue going from strength to strength after increasing sales 31-fold in the past five years.

The business, established in 1995, sold only five homes in its first year of trading, but last year completed 157 sales on sites all over Durham, Tyne and Wear and Northumberland.

The growth in the business, part of the Esh Group, has seen Dunelm set its sights on a move.

In April, it plans to move to new headquarters in Bowburn with other companies belonging to the Esh Group.

A recruitment drive to strengthen the existing team and provide the resources for a structured land acquisition strategy is under way. Construction has begun on three developments, with sites at Shotley Bridge, Consett and Gateshead.

A further seven sites are at advanced stages of negotiation or awaiting imminent planning decisions with construction work on the majority due to start next year.

John Holder, sales director, said: "2002 was our most successful year to date with developments at Widdrington Station, Ashington, Blyth, Shiney Row and Peterlee all selling out in record time.

"These new developments and projects will serve to widen our geographical spread and ensure a diverse house-type mix tailored to each individual development throughout the region."

He said: "Demand for new homes in the region is still outstripping supply and while external influences have affected the market elsewhere, the effect here in the North-East has been negligible.

"In the longer term, we still anticipate a buoyant market although we would expect the rate of price increases for new homes to slow down from its present rate."

Next year will also see the introduction of Dunelm's new Country Range, providing two and three-storey terraced, semi-detached and detached homes.

Mr Holder added: "As one of the larger indigenous house builders in the region, we have grown over recent years into a major employer and a major purchaser for local supply chains.

"We employ local people and subcontractors, we use local suppliers wherever possible and our move to Bowburn further re-enforces our commitment to the region."