Dozens of new affordable homes are set to be built in Burradon.
North Tyneside Council is finalising proposals for the 40-home development, which will feature two and three-bedroom homes and two-bedroom bungalows.
The properties – developed by Galliford Try in partnership with Riverside Housing Association – will be available as shared ownership homes allowing residents in the borough, who are priced out of the housing market, to get a foot on the property ladder.
It has been made possible through a grant of around £1million which has been secured from the Homes and Communities Agency.
Work on the development could begin before the end of the year.
The site at Silverbirch, on the edge of the village, is currently occupied by vacant business units which have been earmarked as no longer suitable to meet the needs of modern businesses.
The development of the site will also contribute to the delivery of 3,000 new affordable homes in the borough by the council.
Mayor Norma Redfearn was delighted with the news.
She said: “This is great news for residents and I am delighted that these proposals for much-needed affordable homes in the borough have taken a huge step forward.
“There is a growing demand for affordable housing here in North Tyneside, which is why, working with our partners, we are committed to building 3,000 new affordable homes over the next decade.”
The decision to declare the vacant units at Silverbirch surplus and the site available for sale was taken as part of the council’s Industrial Estates Strategy, which was agreed in September 2014 when Cabinet approved the sale of a number of industrial properties to reinvest in its remaining industrial estates.
The aim was to help promote business and economic development in the borough by refurbishing industrial units in other established employment areas that had become difficult to let.
This has resulted in an increase in occupancy rates across the industrial estates from 73 per cent to 87 per cent and has also seen 13 new businesses established.