PLANS to regenerate a run-down area of Redcar took a step forward yesterday.

Outline planning permission has already been granted for the development of the Courts, estate and Roseberry Square, but officials from Redcar and Cleveland Borough Council say the time has come to start making important decisions for the development.

The council plans to demolish 214 houses on the 40-year-old estate to make way for a £35m development scheme of 560 houses with shopping and community facilities, landscaping and open space.

At a meeting of the council's executive, Andy Powell, the council's acting deputy director of housing and direct services said a decision not to re-let properties to start the process of emptying the estate had worked. He said that through "natural turnover", occupancy levels had declined so that 45 per cent of the estate is now vacant, leaving just 132 residents needing to be rehoused.

At the meeting, councillors agreed to start rehousing the remaining residents and ensure compensation payments were made, as well as starting negotiations to acquire the owner occupied properties on the estate.

The remaining residents were praised by Councillor Norman Davies who said they should be congratulated for living in difficult circumstances.

He added: "We have had very little management problems on the estate and I hope that will continue. We have got to do this in a fair and proper way for the tenants."

Councillor David Walsh, leader of the council, said letters should be delivered to all the tenants to explain what was going to happen.

The council also plans to recruit a development consultant who will help choose a partner for the scheme and oversee the plans for the development in consultation with the community and stakeholders. The executive also agreed to start preparing to appoint a housing developer for the estate who will work with the council, Tees Valley Housing Association and the local community.

The council hopes the new development will extend ownership to the community, and says it will also be looking to meet other goals such as using local labour and developing training opportunities in the area.

The recommendations will now be discussed at the next meeting of the council's policy and resources committee