THE MULTI-million pound sale of a 1960s eyesore office block could pave the way for the North-East’s biggest council to move to a state-of-the-art new home.

A consortium has bought Milburngate House, in Durham City, with a view to regenerating the crucial riverside site once 1,400 Passport and National Savings and Investment (NS&I) workers have moved across the Wear to the new £27m Freeman’s Reach development.

The business group, which is also behind the Freeman’s Reach project, is remaining tight-lipped about its plans, saying only it will begin consultation soon.

However, it is widely thought Durham County Council may move there, if as planned its ageing County Hall HQ at nearby Aykley Heads makes way for a high-end business park.

Ian Thompson, the council’s corporate director of regeneration and economic development, said the deal was a very positive step but the council had made no firm decisions about relocating.

“We would consider the possibility of moving off our current site to open up the land for employment and regeneration opportunities.

“However, we have made no firm decisions at this stage and are considering all potential options.”

Milburngate House could be empty as early as 2017.

Back in 2012, the council indicated it would prefer a ‘mixed use’ development, possibly with houses, shops, leisure facilities and offices.

However, despite its picturesque riverside setting, the near-seven acre Framwelgate Waterside side has many difficulties, including access, parking, flood risk and air pollution.

Durham City Roberta Blackman-Woods said she was pleased the consortium was genuinely engaging with residents.

John Lowe, chairman of neighbouring Sidegate Residents’ Association, said the best solution would be more housing for permanent residents, but added: “It’s a very attractive but very difficult site. It has stunning views of the castle and cathedral.”

Roger Cornwell, chair of the Crossgate Community Partnership, said the site should be developed as part of a wider scheme to improve the area, including the struggling North Road shopping precinct.

The buying consortium comprises Arlington Real Estate, Carillion and Richardson Capital.

Neil McMillan, development director at Carillion, said: “Securing Milburngate House is a major milestone in the regeneration of Durham City.

“The scale of this site, its riverside frontage and fantastic views up to the World Heritage Site make for a truly outstanding development opportunity, which will have a significant economic impact on Durham and add to the character of the city.”