Craven District Council has awarded a £35 million contract to develop new houses in North Yorkshire.

Lovell and Maple Grove Developments have been chosen by the council to construct 220 homes, 132 of which will be for sale on the open market.

The remainder of the homes will be build for low-cost home ownership and affordable renting purposes.

The council's preferred bidder, Accent Group, withdrew their plans in October 2008.

Noel Adams, Lovell's regional director, said: "We are delighted to have been chosen, with Maple Grove, as the Council's preferred partner for this scheme.

"We look forward to progressing this exciting opportunity with the council over the coming months."

Councillor Chris Knowles-Fitton added that the move was positive for the Skipton area.

Lovell will be developing the houses, while an additional retail development will be created by Maple Grove.

Construction is expected to start in the first half of next year and take five years to complete.