Northumberland County Council's arms-length subsidiary company has received planning permission to proceed with the second phase of a development in Wooler.
At Thursday's meeting of the council's North Northumberland Local Area Committee, members agreed to grant permission for 12 new homes in the town as part of the second phase of the Kingsmead development.
The homes will consist of four three-bed semi-detached homes, one four-bed detached as well as two two-bed semis, two three-bed detached and two three-bed bungalows.
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The plans were submitted by Ascent Homes, with is owned by the council's development company Advance Northumberland.
Wooler Parish Council had raised concerns about a lack of affordable housing, but it was pointed out that the developer had made 11 homes on the previous phase of the development available for affordable rent, meaning its obligations under the Northumberland Local Plan had been met.
Speaking at the meeting, Coun Trevor Thorne said: "I would like to propose acceptance of the second phase. As far as policy goes this fits in with the Northumberland Local Plan.
"I'm very happy to support this. The previous phase had 11 affordable homes so I feel we have done our bit."
The plans were approved by seven votes to one.
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