Gladedale has been awarded planning permission to build a new development in Sunderland.
The £8 million project involves redeveloping land which is currently home to the derelict Bat Cave Public House near Pemberton Bank.
It will be demolished this month and in its place Gladedale will build 77 two, three and four-bedroom affordable homes.
A spokesman for Gladedale said: "The Bat Cave is set within a prominent position in the village but over the years has fallen into disrepair.
"Our investment will create much-needed new housing and transform this now derelict site into a vibrant and highly sought-after housing development."
Gladedale is also investing £350,000 in Sunderland to build a new playground for children, educational facilities and a public space.
The housing project is part of a wider scheme to create more than 400 affordable homes in the north-east before July.
Developments by Gladedale already established in the north-east include Derwent View and Tyne Vale in Stanley, The Bakers in Durham, and Easington Lane in Sunderland.

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Date Published: 01 May 2008