Plans for Britain's largest development of 'zero carbon' homes to be built in Peterborough are moving ahead after a grant of £7.8 million from the Homes and Communities Agency (HCA) to provide 120 affordable homes.

In total, there will be 344 high quality, environmentally-friendly homes forming an important first stage in a long-standing vision for regenerating the South Bank of Peterborough’s River Nene. The 120 affordable homes will house 475 people and will be delivered by Morris Homes.

The project will demonstrate to the house-building industry in the UK and overseas how massive reductions in carbon emissions can be achieved by adopting improved design and construction technologies.

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Terry Fuller, Director for the HCA in the East of England, said: "This is an important step forward in what is a long-term project for all partners involved. The 'zero carbon' status aims to create new homes and places that are appealing, attractive and point the way to how we could all live in the future. We are really pleased to be able to continue to support this project, and deliver high quality, environmentally friendly, affordable homes for the local community."

Morris Homes is working with sustainable architecture specialist Browne Smith Baker after being selected as the preferred developer following a national competition as part of the Carbon Challenge programme. The development will be built to Level 6 of the Government's Code for Sustainable Homes.

The three landowners for the 17-acre (seven hectare) site – Peterborough City Council, the HCA and the East of England Development Agency – have signed agreements with Morris Homes, which submitted a planning application last week.

The development will include open spaces, a sustainable urban drainage system (SUDS), carbon zero energy generation and retail and community facilities. Initial proposals were unveiled in January 2009 and a further public consultation event was held in January 2010.

(CD/KMcA)