A flagship housing scheme worth £20m will breathe new life into areas of Hartlepool to provide accommodation for the 21st century.

Hartlepool Revival was launched yesterday by the town's MP Peter Mandelson and will target areas where Victorian terraced properties are falling into disrepair and have outlived modern needs.

The organisation will work closely with residents and the town council to upgrade dwellings over the next eight years.

"Improved housing and the environment in areas of the town, which have suffered from the decline will bring direct benefits for residents as well as improving the qualities of life for families across Hartlepool," said Mr Mandelson.

"The Government's New Deal for Communities has proved itself to be a real success already, so I look forward to the years of improvements for people of our town.

"Good housing is essential for building strong and sustainable communities, which is why I am proud to launch the Hartlepool Revival."

The Endeavour Housing Association and The Guinness Trust are leading the scheme, which is one of the first of its kind in the country.

Endeavour, one of the region's major housing providers, looks after the needs of more than 1,400 tenants in the Tees Valley, Durham and North Yorkshire while the Guinness Trust has over 1,400 homes in the North-East and more than 350 in the Hartlepool area.

Hartlepool Revival has come about following a joint bid to Hartlepool New Deal for Communities and will be working closely with Hartlepool Council, the Housing Corporation, the Government Office North-East and other private and public sector partners.

Chief executive of Endeavour Housing Charlie Hughes said: "The launch of Hartlepool Revival signals the start of a venture, which will provide improved housing for residents and significant environmental improvements such as new 'pocket' parks, gardens to some existing terraced houses and some newly built properties.

"There is a surplus of old and unsuitable housing for modern day needs in Hartlepool, and the plan includes some demolition so we will be working with everyone involved.

"The launch of this plan is an important step but there is still a lot of work to do."