THE decision to build a new Tesco supermarket in Chester-le-Street, County Durham will provide a much needed boost for the town.

That is according to Graeme Herron, valuations expert with Newcastle-based Sanderson Townend & Gilbert.

He believes the development is the most significant to take place in the town in the past decade.

The supermarket chain has received permission to build a 35,854sq ft superstore to the west of the town's market place and east of the viaduct.

Building work is due to start in the first half of this year and, when completed the new store will have parking for more than 300 cars.

Mr Herron said: "Undoubtedly, the new Tesco will drive in town centre shoppers, stimulate trade and offset resentment caused by the council's introduction of parking charges and restricted access to Front Street, which have stunted trade and hindered rental growth."

However, he said that it was too early to say how the store will affect other retailers, particularly in the northern and southern parts of Chester-le-Street.

He said: "The debate now centres on whether the store will help or hinder town centre retailers.

"One view is that it will be detrimental in attracting existing trade. Another is that it will act as an anchor store, driving in traffic to the town centre - in the same way as the SavaCentre and Asda stores at The Galleries in Washington."

Mr Herron said that rental levels at the north end of Front Street were now breaking the £40 per sq ft mark, particularly for units close to the entrance of St Cuthbert's Walk, the small covered centre connecting the Co-op superstore and the adjacent car park with Front Street.

He said: "The hope is that property in the northern end of Front Street will see rental growth as Tesco increases both foot traffic and town centre access.

"At the southern end of Front Street, which is not as readily accessible, there is perhaps more concern that shopper levels may drop off and that rental values will stagnate as a consequence."