AN art project in which two three-storey houses are built and then taken down again is set to transform a city centre.

The House-City exhibition is to take place in Newcastle's Grainger Street over four days this week. Builders began work on the identical 6.3m-high designs yesterday.

The "time-based sculpture" is the idea of German Wolfgang Weileder, and is backed by artist Antony Gormley, who created the Angel of the North.

The structures are designed to look like houses, but will only be shells.

The constructions, worked on round-the-clock, will take shape beside Grey's Monument, in the heart of the city.

As teams of builders create and then demolish them, they are to be recorded by black-and-white time-lapse photography from cameras around the site.

These images, along with a film showing the development of the project, are to feature in an exhibition at the Baltic arts centre, in Gateshead.

Internet users will also be able to log on and watch the work via a webcam at www.arenaproject.com/webcam

The buildings are part of the Arena project, a public arts venture being supported by the Baltic and Gormley.

Mr Weileder, a sculptor, said the siting of the project in this part of Newcastle was vital for it succeed.

He said: "It was important for me to get the exact location for my work and I felt that the site next to Grey's Monument was perfect.

''As Newcastle is rich in architectural heritage, I wanted to show that temporary and animated buildings can also make an impact on the city."