By working in partnership The Gateshead Housing Company and Home Group have secured £5.4m of improvements funded through the Government's ECO project.
Through the scheme over 800 homes in Gateshead will have external wall insulation carried out, that could then see householder's annual fuel bills reduce by up to 40%.
Work will be carried out to a number of 'non-traditional' homes in Gateshead, which because of their mainly non-brick construction could not benefit from cavity wall insulation already completed at thousands of homes across the borough.
As part of the scheme, a number of homes managed by the housing company will also have window improvements and heating systems upgraded at the same time, as part of its long-term investment programme.
The joint bid by the two housing providers was seen as key to securing the funding of the work, which should be completed by July 2014 by Mears Group and Cosyseal Insulation Ltd.
Neil Bouch, The Gateshead Housing Company's Director of Customers and Communities, said: The securing of £5.4 of funding to improve hundreds of local homes is great news for the borough.
Working with Home Group on a joint bid for ECO funding means that people will see improved homes, reduced fuel bills and a significant reduction in carbon emissions in the borough for years to come.
Graham Darby, Home Group head of customer service, said: We are delighted that these improvements will help our customers see real reductions in their energy bills.
Some of our customers really struggle with the energy costs in their homes and by working with The Gateshead Housing Company we've been able to pool our resources for the benefit of our customers.
Colin Middlemass, Managing Director of Mears Group, said: Mears are highly delighted to be involved in this exciting project that demonstrates collaborative partnership working in its fullest format providing real tangible benefits to the local community.