A former factory site which has remained derelict for more than 20 years is about to be transformed into a £15m new home scheme.

The site in Byker, Newcastle upon Tyne, will be converted into 80 two and three-bedroom houses by housebuilding specialist Keepmoat who will be working in partnership with Newcastle City Council, Leazes Homes and Your Homes Newcastle.

It will also include 12 bungalows for the elderly and 36 apartments as part of an assisted living block.

Richard Brass, Regional Managing Director for Keepmoat in the North East, said he was delighted to be involved in the regeneration of the city despite current economic challenges.

“The Grove is a fitting example of how partnership working can deliver an exciting new community that will be enriched by a variety of residents of truly mixed age and ability,” said Richard.

“Together, we have taken vacant land and stimulated economic growth and housing solutions, and the appetite is clear from the home sales we have taken already.”

Councillor Ged Bell, Newcastle City Council’s Cabinet Member for Investment and Development, said this announcement marked a key milestone in delivering housing that meets the needs of the local people.

“The Grove will create a new community in Byker that reaffirms the council’s commitment to deliver a more inclusive housing offer, injecting new life into the area and creating jobs for local people,” said Councillor Bell.

Bill Midgley, Chairman of Leazes Homes, added that his company was proud to be involved in helping bring derelict land back into use to provide quality homes.

“High quality accommodation for those with additional support needs is extremely important, particularly as we have an aging population here in Newcastle,” said Bill.

“Lawson House will offer a value for money alternative to the increasing costs associated with residential care, which reduces pressures on council budgets and the purse strings of those requiring support, and offers peace of mind that residents are in safe hands.”