A CORNER of the region is to be transformed into Middle Earth - as plans for seven hobbit homes get underway.

Carol Hopkinson and Karl Wragg bought Golden Hill Farm, near Liverton, east Cleveland, once well known as the tourist attraction Bunnyland.

The couple run an existing campsite, which also has two traditional gypsy caravans, and have now received £10,000 from Redcar & Cleveland Council's coastal communities fund to build the first of seven underground hobbit houses at the campsite.

The unique accommodation is based on the Shire, in JRR Tolkein's Lord of the Rings novels, and the building of the hobbit homes will create four jobs.

Ms Hopkinson said: "When we opened the campsite we wanted to create a place where families - and particularly children - could enjoy nature instead of being glued to the telly.

"We aim to create an environment for wildlife to thrive and the new project is an extension of that ethos."

"North Shire" will cost £200,000 to build, with sympathetic landscaping, and will operate alongside the couple's existing campsite.

Each wheelchair-accessible subterranean hobbit house will have two bedrooms, a lounge, cooking facilities and a wood burning stove.

Extra funding is coming from National Parks and Teesside charity Five Lamps and the facility will be made available to organisations like the Teesside children's hospice Zoe's Place.

Steve Goldswain, the council’s cabinet member for community safety, said: “This is an extremely exciting project and we are thrilled to be able to play a small part in it.

“Carol and Karl already have a thriving business and we wish them the very best of luck with this latest venture.

Grants of up to £10,000 in match-funding are available to support tourism and leisure businesses in the borough through the Coastal Communities Fund.

Contact Debbie Allinson on 01642 444329.

The scheme runs until March 2015.