A homeless couple who have been camping on a riverbank for seven months were given their dream Christmas present yesterday - a roof over their heads.

Kevin and Susan Howe, who lived in a tent beside the River Tees at Barnard Castle, County Durham, after being evicted for rent arrears, were allocated a housing association flat.

Mr Howe, a 45-year-old former soldier, said: "We are really overjoyed. We could not have faced the winter in a tent. A flat must be the most wonderful Christmas present we have ever received."

His wife, Susan, 39, added: "We have had a terrible time in mud, snow and ice lately so we were at the end of our tether. It became a nightmare. Now it will be marvellous to live like normal people once more."

The couple were evicted by Home Housing from their house in Barnard Castle for arrears of £2,500 - a sum they say built up because they expected housing benefit, which was eventually turned down.

But now the association has given them the tenancy of a one-bedroomed ground-floor flat 12 miles away in Frazer Court, Coundon, near Bishop Auckland.

The couple, who have saved money from various benefits with the guidance of a social worker, agreed to pay the association £1,700 off their arrears, and to pay the rest, along with their new rent of £60 a week, by direct debit.

Mr Howe, who served nine years in the Army before working as a postman and range warden, said: "We got into a muddle because I am unable to work due to illness. But now we have got straight and will be good tenants."

The couple moved on to the riverbank in a borrowed tent, which was ripped apart by wind. They were given a larger one which was destroyed in an arson attack. Then they were given another tent, which was damaged by gales.

At first they cooked meals on a log fire, but then wet weather made it impossible to find dry wood so they could eat only sandwiches and takeaway meals.

Mrs Howe said: "We are grateful to everyone who helped us during our ordeal. Now we can't wait to get inside the flat and get our furniture out of storage."

Their tenancy was confirmed in a letter from Home Housing's assistant housing manager, Angela Mason.

But the association and social workers said they could not comment on any individual case.

Mr and Mrs Howe were driven to Coundon yesterday for their first look at the flat.

It still had protective boards at the window. These will be removed over the next two days while electricity and gas are switched on. They plan to have their furniture taken out of storage and moved into the flat on Thursday.

"It has been lovely to see where we will be living," said Mrs Howe.