Developers intend to demolish flats in Thackeray Road, Hartlepool, and build 12 three-bedroom houses designed with the highest standard of energy-saving devices available.

They will include solar panels on the roof to help heat water, high levels of insulation, and recycling bin storage areas. Developers say they will be built to the highest Government standards.

The semi-detatched homes will be rented by Housing Hartlepool and aimed at young families who cannot afford to get on the housing ladder.

Hartlepool Borough Council's planning committee said it would back the scheme. However, final permission must be given by the Government Office for the North East as the development will involve building on council owned land currently set aside as open space.

Graham Morgan, commercial director of developers Dunelm Property Services, said: "The energy-saving features are the highest standard set by the Government at this moment in time.

"Hartlepool Housing has increased demand for family homes in this area."

Councillor Chris Simmons said: "I believe we have a unique problem in Hartlepool where there is a great dearth of lower cost housing for young families who can't afford to buy in this particular climate. We have a shortage of almost 400 homes a year and we are nowhere near to meeting that. I think this is a very imaginative use of the land."

Despite the comments of the developers, not all planning committee members were in favour of the scheme.

Councillor Robbie Payne voted against the scheme over the loss of green space.

He said: "If you take away the green space you will have potentially 12 more families with children moving into the area and they will have nowhere to play. I think the space is a lot more worth keeping."