A company in the region has started work on a £10m contract to build three energy efficient care homes in London.

Metnor Ecosystems, in Newcastle, is making the timber-framed buildings off-site. They will then be delivered and erected in Islington, Richmond and Hammersmith.

The high-insulation buildings, which should reduce fuel bills by half, will replace local authority facilities.

The care homes, built for Care UK, have triple-glazed windows and doors, insulation and vapour barriers.

Metnor said the buildings would be 30 per cent more energy efficient than building regulation guidelines - ahead of the Government's target for improving energy efficiency in new buildings.

The Metnor construction system can be used to build all types of structures up to five-storeys high, from schools and hotels to offices and housing.

Work on the Islington care home has begun and the weatherproof shell will take about five weeks to complete, before being clad in brick.

The 2,750sq ft, four-storey, 53-bed building will have a day centre on the ground floor and will be ready for occupation by the end of June next year.