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The current properties, including Alma House, Alma Resource Centre and a disused garage will be demolished to make way for new and modern homes in the heart of the town centre.
The development will be delivered by Thirteen in partnership with Stockton-on-Tees Council supported by funding from Homes England.
Work will start by end of March 2018 and homes should be ready to move into by autumn 2019.
The development plans include 34 homes, all for social rent including 20 two-bedroom apartments, 10 two-bedroom houses and 4 two-bedroom bungalows.
The site is in an excellent location, with Stockton town centre and amenities within a short walking distance and easy access to the town’s train station.
Ian Wardle, chief executive at Thirteen said:
“We are really pleased that planning permission has been approved and that we have the green light to begin work on this development, which will provide high-quality, affordable rented homes on a fantastic site in the heart of Stockton.
“It will not only complement the recent investment in the regenerated town centre but will also bring this important site back into use by providing, family housing, apartments and bungalows, that will meet the needs of the local community.”