THE first of 25,000 homes in east Cleveland to benefit from a £12m upgrading scheme should be improved by Christmas.

The Redcar and Cleveland Warm Zone project, backed by the Government and energy company Transco, was set up after the success of a similar scheme in Stockton. And it is hoped the first 100 social and private homes, all in Redcar's Kirkleatham ward,will have had cavity and loft insulation installed by Christmas Eve.

Eventually 25,000 homes, both socially owned and private, will benefit in the next two-and-a-half years.

Warm Zone director Alex Cunningham said it has been a tremendous start but he will be aiming to complete many thousands more homes by the end of next year.

Home assessors move door-to-door and have already looked at 3,000 homes in Kirkleatham and Coatham, in the Redcar area, since the scheme was extended by the Government last August. The assessors will begin work in the Newcomen ward next month.

The Warm Zone project is supported by a number of partners including Coast and Housing and Redcar and Cleveland Borough Council.

Prime Minister Tony Blair announced the creation of other Warm Zones after the success of the Stockton project in which 18,000 homes were assessed for home efficiency grants and 8,000 surveys carried out. A total of 1,500 homes in Stockton have been fitted with central heating.