WORK has started on eight new bungalows which will provide homes for people over 55 within reach of the centre of Spennymoor.

Three Rivers Housing is developing a site behind Ken Warne's supermarket, in Whitworth Terrace, with the help of a £336,000 grant through the Housing Corporation.

The association also has properties in the town's Bessemer Park area built under a regeneration scheme in 1997.

Its chairman, Clare Hepworth, is expecting plenty of interest in the homes which are due for completion in June next year.

She said: "Together with Sedgefield Borough Council and the necessary funding in place, we now have this opportunity to add value to the community by helping to meet housing needs for local people."

Glyn Hall, the council's housing director, said: "We welcome this new brownfield development.

"Through providing much-needed accommodation for the elderly in Spennymoor, it will add to the quality of life for people in the community."

North-East builders Roderick Brown Construction have been appointed contractors. Architects are Brian Ashdown and Elliott Associates.