WORK has started on a new development in Durham which will see shops and empty warehouses replaced with a new retail park.

Machinery is now on site in Dragon Lane, Dragonville, and work to demolish empty warehouse units, opposite Tesco Extra, has started.

Dragon Lane LLP is developing the site, which will be home to Durham’s second Lidl store, homeware store The Range and a car park, and would be accessed from Damson Lane.

Several homes in Teasdale Terrace are being knocked down to make way for the development while existing businesses Durham Hand Car Wash and Walkers Furniture have now closed.

It is hoped the new retail park, which developers say will create about 110 jobs, will open by next summer.

As part of their planning permission, developers have contributed £175,000 towards a new relief road in the area, which is aimed at alleviating congestion around Dragon Lane.

Durham County Council will be bringing forward its plans for the road in the coming months.