A £1M housing scheme for the elderly, which looked certain to be shelved, has been handed a lifeline.

Plans to build 16 flats in Barnard Castle town centre were destined to be scrapped because the original developer dropped out.

But work is set to start this week after Endeavour Housing Association, based in Middlesbrough, stepped in and agreed to take on the construction of the 16 two-bedroomed flats.

The scheme is expected to be finished by the summer of 2001, and will provide accommodation for pensioners. Local people will be given first pick of the flats.

Endeavour, which manages more than 1,500 properties in Teesdale, Hartlepool, Middlesbrough, Redcar, Stockton and Thornaby, will be using the original property designs to build the rented flats at a former car park site, in Birch Road.

Ray Gibson, development director, said the flats would provide affordable accommodation for elderly people.

He said: "We had tremendous support from Teesdale District Council and the housing corporation, who are providing almost £400,000 worth of Government grant to ensure rents for the flats can be kept at an affordable level."

The need for the flats, which will be ready for occupation by next summer, was identified by the district council, which will be able to nominate local people from its waiting list for tenancies.

Endeavour also plan to build five flats for younger people in Barnard Castle, at a cost of more than £300,000.

Mr Gibson said: "We are using the same contractor and design team for this other project, which is due to start later in the summer.

"It involves the conversion of a bistro into flats and will complement the Birch Road scheme.

"One of the major objectives is to work with our local authority partners to help them fulfil their individual housing strategies, and this is a good example of partnership in action."

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