A HOUSING association is about to break new ground after receiving the go-ahead for its first new-build scheme.

Not-for-profit Housing Hartlepool, which took over the running of the town's former council housing stock in 2004, has received a £461,221 grant from the Housing Corporation to build 20 shared-ownership properties for 78 people in the Dyke House area.

The scheme is part of the wider regeneration of the area, known as North Central Hartlepool, and work is expected to start next year.

Cath Purdy, chief executive of Housing Hartlepool, said: "This is an exciting development for the company.

"These will be the first new-build homes for Housing Hartlepool, and they will enable the company to diversify in terms of the type of tenure we are able to offer to the people of Hartlepool.

"We will now be looking to increase the number of homes that we are able to build in future years."

The grant from the Housing Corporation was awarded under the National Affordable Development Programme for 2006-8.

Housing Hartlepool was able to gain the funding after joining forces with other housing associations in the North-East and forming the Spirit Partnership.

The partnership, which also includes Middlesbrough-based Erimus Housing, the Three Rivers Housing Group, and the Tees Valley Housing Group, aims to build good quality affordable homes.