The improvement work should be completed by 2007
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Homes in Northumberland are to be improved with over £36m of funding.
More than 5,000 houses in Blyth are to have £6,500 spent on improving them.
Blyth Valley Council says it is to put in new doors and windows, replace old kitchens and bathrooms, and upgrade people's central heating.
The upgrade is being paid for by the government, which says a decent home is one that has a kitchen which is less than 20 years old, is in a reasonable state , and has efficient heating.
The council says the work will be done within the next four years.
Chief housing officer Ian Conway said: "The money will make a massive difference to 5,500 homes, we have never seen an investment like this.
"We will be able to do an awful lot of work with this money."