TREDEGAR-based Century Homes has been awarded a £3.5 million-plus contract to build over 300 affordable houses in the North-East.

Nine local housing associations have come together under the government's 'drive for efficiency' agenda to build the houses over the next two years.

Founded in Ireland in 1990, Century Homes claims to be Europe's largest timber-frame house manufacturer.

Its construction method enables core elements of the houses to be manufactured in a factory environment before being transported to site, and cutting the build time of masonry houses in half.

Century Homes' managing director Gerry McCaughey said: "Winning this flagship affordable housing contract demonstrates our ability to deliver homes of the highest quality anywhere in the world.

"It also shows how a group of forward-thinking housing associations can unite to drive efficiencies in construction, without compromising quality." Under the terms of the deal, Century Homes will erect homes in Darlington, Easington, Durham, Thornley, Stanley, Gateshead and South Tyneside.

Ray Gibson, development director at Endeavor, one of the housing associations involved, said: "The alliance represents a superb opportunity to move into house-building in the 21st century.

"Timber-frame construction not only enables us to build quickly, but also to improve housing quality and energy efficiency in a way that can't be achieved through traditional construction methods."

Ian Prescott, deputy chief executive of Nomad Housing Group, said: "The housing association alliance is currently delivering around 70% of all new affordable, local-needs housing being developed in the North East.

"Together we are in the process of delivering around 1,300 new homes across the region.

"By coming together as a consortium we are able to offer Century Homes a scale of business that in turn has allowed them to offer a very competitive price on a high-quality product.

"This initial contract for 300 homes is hopefully the start of a long-term mutually beneficial relationship with Gerry McCaughey and his team."