A £6.8m grant for infrastructure improvements will enable 1,500 new homes to be built in Newton Aycliffe.
The cash has been awarded to Durham County Council through the Government’s Housing Infrastructure Fund.
It will be used to improve infrastructure in Newton Aycliffe, including roads and utilities, overcoming significant development costs that had been affecting the viability of housing sites within the town.
Work will include the upgrading of the A167 in order to reduce congestion and help tackle traffic capacity issues. The investment will also deliver housing site access roads and will be used to install water, sewerage and power supplies.
Cllr Carl Marshall, Cabinet member for economic regeneration, said: “We want to ensure a wide choice of quality homes in areas where people want to live and work.
“This cash will enable the delivery of much-needed new homes in the south of our county, which will have a significant impact on the economic growth of the area and wider county.”