Hanover Housing Association has signed a £20m deal with Durham County Council to develop four extra care schemes for older people within 12 months.
Hanover will build 207 flats, offering independent living with on-site care services, to replace six traditional residential homes that will be closed.

The association won the contract after Durham tendered its plans in January. It will provide residential management and catering services, while individual care packages will be delivered by staff from County Durham Care.

The registered social landlord has already built 23 extra care schemes in partnership with councils around the country. A fifth scheme for Durham is to be signed imminently.

Hanover marketing coordinator Kirstie Miller said: "Because of changes in care structures, we're finding extra care schemes are very popular.

"We pioneered the concept, and now we're definitely one of the top providers."

Construction work has already begun on four sites, and the first residents are due to spend Christmas in their new homes.

Les Shaw, marketing manager for County Durham Care, acknowledged that the timescale was tight, but said: "Gleeson [Hanover's contractor partner] is delivering a very aggressive, structured build programme.

"All three partners will project manage the development to achieve the targets."

Durham council's shift from care homes to independent sheltered living follows a review of its services to older people and difficulties in modernising its current stock of 16 homes.

However, a sixth extra care scheme has been delayed pending the outcome of a judicial review over the closure of the Stoneleigh care home in Barnard Castle.

The case is being brought by resident Lavinia Worley. She argues that the plans breach her rights to respect for home and family life under the European Convention on Human Rights.

Shaw said: "The team firmly believes they were right in terms of communication and consultation with residents [over the closure], but they have decided to put the sixth project on hold."