A residential home praised by inspectors is being forced to close due to lack of demand.

Durham Aged Mineworkers' Homes Association has decided Merrick House, in Easington, east Durham, will shut on January 31 next year.

The 12 residents and their families have been told of the closure so they can make alternative arrangements. Two full-time and 18 part-time staff have also been informed.

Merrick House, which opened in 1987, was recently congratulated by inspectors on its helpful and caring staff, good team work and the relationship between carers and residents.

Inspectors were particularly impressed with the number of social activities on offer to residents.

Association chairman Joe Whitworth said a shift in the Government's care priorities for the elderly meant the emphasis was on care for older people in their own homes.

He said: "This is sensible, but it does mean we will not be able to attract enough people to our home in the future to keep it viable.

"Although Merrick House was described by the Durham County Council registration and inspection unit as a very friendly, clean and happy home, it has been running for some time at well below its capacity.

"Increasingly, demand will simply not be there. We have explored other areas, but as things stand we will have no alternative but to cease operating the home.

"The decision to cease operating has not been taken lightly and it is clearly no reflection on the dedication and professionalism of the staff, who could not have possibly done more."

Mr Whitworth said the closure would not affect the future of residents in association bungalows or its other residential home, Langley House, in Horden, County Durham.

Alternative uses will be considered for the building, which the association feel is "a potentially excellent community facility".