Social landlord Isos Housing and Prudhoe Community Partnership are bringing the £400,000 scheme forward, funded by the Homes & Communities Agency (HCA), Northumberland County Council and Prudhoe Community Partnership itself.

The former Windsor Bakery, on a prominent site by the traffic lights on Front Street, has been empty for several years. The building did not meet modern standards for retail or residential use so the old building has been demolished and construction of the new building is underway.

Prudhoe Community Partnership is backing the project as part of wider plans to improve the frontage of shops and businesses on Front Street, and help the vibrancy of the town centre.

Isos and PCP are working closely with Northumberland County Council and with The Cooperative Group, to bring the development forward. The main contractor is SV Rutter.

The new building will be two storeys high and will feature two ground floor retail units and two first floor, one bedroom flats. This concept is known as Living Over The Shop (LOTS), as a way for town centres to be revitalised, and ensure they do not become deserted when shops close at 5pm.

Vince Walsh, development and regeneration manager for Isos Housing, said: “This is a perfect example of the kind of scheme Isos can work on, as a not-for-profit social landlord. We can work alongside community representatives to deliver a project which provides the type of affordable homes people need alongside an excellent standard of retail provision too.”

George Hepburn, chair of Prudhoe Community Partnership, said: “The Partnership is delighted the scheme is under way and we look forward to letting two modern shops on Front Street in time for Christmas that will contribute to a thriving community. “Anyone interested in renting one of these great new shop should contact the Partnership office at The Spetchells in the centre of Prudhoe, just 100 yards from the development site.”