WORK has begun on a £5 million regeneration scheme to replace a rundown former care home with new housing.

Durham County Council voted to close Cheveley House, in Belmont, Durham, along with four other residential homes in April 2014 in a cost-cutting drive.

But elderly residents and their families had been abandoning the facility for months beforehand, due to problems with its roof and floors. Cracking and flaking was discovered in the concrete.

In December, the council granted planning permission for the home, off Broomside Lane, to be demolished and replaced with 26 new homes, comprising three, four and five bedroom houses and two and three bedroom apartments.

Demolition has now begun and the 1.4-acre site is being transformed into a cul-de-sac by Newcastle-based developer All Saints Living, part of The High Street Group, a major finance and property firm.

The estate will be known as Aidan Gardens and accessed via Brackendale Road and the homes will be sold through Ben Charles estate agents.

Keith McDougall, pre-construction manager at All Saints Developments, said: “This will be our fourth development in the North-East.

“We recently completed eight homes at Ashcroft Mews in Seaham and converted an 18th century pub and outbuildings in Rennington, Northumberland. We are also currently working on another conversion in Hexham.

“Our aim is to help meet the region’s housing needs with a cross section of property styles and prices, using locally based suppliers and labour wherever possible. We anticipate up to 50 people will be involved at Aidan Gardens.”

Under terms dictated by the council, a fifth of the homes will be discounted by up to 24 per cent of their market value and made available to local families that meet Government criteria, in an effort to provide more affordable housing.

The new homes will be on sale by Easter and it is expected the first residents will move in during the autumn.

The scheme was approved with the support of Belmont county councillors Patrick Conway and Bill Moir, who spoke in favour of it at December’s committee meeting.

Last week, demolition began on Grampian House, another former council care home, in Peterlee, where planning permission exists for a new 55-bed Helen McArdle Care home.