The artist's impressions have been released by a consortium of developers that were announced today as the
chosen group to develop the carbon-neutral housing estate on the city's South Bank, and work on the pioneering scheme could begin as early as next spring.

It had been thought as many as 450 eco-homes would be built on the former Elliott Group factory site in Glebe Road as part of the project, but it has been revealed the new estate will consist of 344 houses – more than a third of which will be affordable.

The consortium of Morris Homes, Gentoo Homes and Browne Smith Baker architects – known as pPod – is now working towards submitting a planning application by the end of this year.

The South Bank Phase One scheme has been hailed as a key step in making Peterborough the country's "environment capital", according to landowner and regeneration agency English Partnerships. Simon Bishop, Eastern England projects director at English Partnerships, said: "The demand for homes and the impact of climate change are two of the biggest challenges facing the house-building industry.

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"The development of South Bank Phase One will help address both issues and assist Peterborough in its ambition to become the nation's environment capital by creating a truly sustainable new community which makes the most of its natural surroundings."

The scheme is part of English Partnerships' national Carbon Challenge programme, which aims to accelerate the house-building industry's response to climate change. The project has been developed alongside Peterborough City Council, Opportunity Peterborough and the East of England Development Agency.

According to the latest plans, the development will consist of 344
carbon-neutral homes along with shops, community areas, canopy walkways and a cafe selling produce grown in on-site gardens, orchards and allotments.

The homes will be powered by a combination of biofuel and solar panels, requiring no energy from the National Grid, and 120 will be available for social rent or shared ownership through housing association Cross Keys Homes.

Phil Harker, director of technical operations at Opportunity Peterborough, said: "This is fantastic news for Peterborough.

"We have been working hard behind the scenes to ensure we can secure a developer and it is great we have come to an agreement to get things moving forward.

"The next step is to work with the consortium to further evolve their designs in the hope of submitting a planning application by the end of 2008 and beginning work by spring 2009.

"It is an ambitious timescale but the developers are keen to work with us to get things started as quickly as possible."

Mr Harker said the project was scheduled for completion by 2014, adding that it would set the standard for how homes would be built throughout the UK in future.

Peterborough City Council leader John Peach said: "The exciting Carbon Challenge scheme will enhance Peterborough's reputation as a UK leader in high-quality sustainable development and it will stimulate progress in our vision for the much larger South Bank area."