The Rat Race Ale House, at the town's railway station, has been created by real ale enthusiast Peter Morgan who was made redundant from his office job due to the credit crunch.

The pint-sized pub, which will serve up a host of little-known beers, is believed to be the only micro-pub in the North East.

Punters packed the place out for its opening night on Wednesday.

Peter, 44, said: "It was fantastic. I couldn't have asked for any more.

"It was busy, and everyone enjoyed themselves and had a great time."

He has spent around £10,000 transforming the former newsagents into the tiny hostlery, which measures just 20ft by 14ft.

It is so small there is not enough room for a bar with Peter pouring drinks from the cellar – a cramped room off the main room.

The pub will only sell real ale and cider, along with soft drinks and wine.

Although it is estimated that 52 pubs close in the UK every week Peter, from Trimdon Station, reckons his back-to-basics approach will prove a success.

It has already been welcomed by fellow real ale enthusiasts, and is attracting commuters passing through the station.

Customer Pete Jeffreys said: "I think it's a great idea.

"It is going back to the pubs that my nana used to talk about, where someone had a bar in their front room.

"I think it makes a change from all the bars with loud music.

"It is something the town needs."

Peter, a member of the Campaign for Real Ale (CAMRA), decided to go ahead with the idea after hearing a presentation on micro pubs at the CAMRA annual meeting.

He had recently been told he was losing his job as a building society resource manager, and decided to follow his dream.