Hartlepool-based property developer North Heights is already building its third development in the region, which comprises five three-bedroom homes on a site close to the historic Plough Inn.
The development is North Heights’ third project and includes two semi-detached homes alongside a bank of three townhouses, all with gardens and off-street parking.
The homes will be sold through a local agent and are due for completion by August this year.
The build has been backed with a £400,000 development loan from Lloyds Bank, which also helped fund North Heights’ debut development of four homes in Northallerton in 2019.
North Heights specialises in developments from four to ten units across the North East, from Morpeth in the north and as far south as Whitby.
And director Ben Brownless said he is seeking more sites across the region with potential for development.
He said: “We’re a small developer, but that means we can be flexible, and we have a lot of experience on our team.
“Ellington is a very popular village, within commuting distance of Morpeth and with good local schools, so we’d expect these homes to prove very popular with young families.
"This opportunity came about because we have a good relationship with Punch Taverns, the owners of The Plough Inn, which is in the process of selling off sections of its property portfolio.
“This is the second time we have worked with Lloyds Bank, who have been extremely helpful in helping get this project over the line.”
John McLoughlin, relationship manager at Lloyds Bank Commercial Banking, added: "North Heights is a great example of a local business that knows its market and we’re pleased to support them with the investment they need to continue their growth story.
“We’re committed to helping Britain prosper and projects like this have a positive impact on a local economy and community."
North Heights has also acquired the site of a disused social club in Chester-le-Street, Durham, where it has submitted plans to build four semi-detached homes.