The joint venture partnership between Evans Property Group and Keyland Developments has already secured planning permission for 1,100 new homes, a primary and secondary school, public open space and a local centre for the site at Skelton Gate.

In July this year, Templegate Developments submitted an additional application for a further 700 homes, taking total housing up to a potential 1,800 homes.

The Homes England funding will support the initial infrastructure and reclamation works, which alone will cost £53m.

These works will facilitate the development of the entire scheme, which is set to make a significant impact on the region’s housing targets.

Peter Garrett, managing director of Keyland Developments, said Templegate was committing major investment into the Skelton Gate regeneration scheme.

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“The plans to create an entirely new sustainable community, while aspirational, have always been entirely deliverable and we are incredibly excited to be at the stage where preparatory works can commence.”

James Pitt, development director at Evans Property Group, added: “The securing of this significant loan from Homes England has unlocked and accelerated the development of Skelton Gate and will enable us to commence the first phase of our groundworks and infrastructure programme with immediate effect.

“The vision for Skelton Gate has been developed over almost a decade with close collaboration between Homes England, Leeds City Council, as well as NHBC and we are now looking forward to commencing on site.”

Neil Milligan, head of infrastructure and complex projects at Homes England, said Skelton Gate was an example of how Homes England worked with ambitious partners to make homes and communities happen.

“Through our Home Building Fund, we help unlock land to create homes where they’re most needed.

“This development will transform a brownfield site within the Aire Valley, a key strategic regeneration and growth priority for Leeds city region.

“We look forward to seeing a new neighbourhood develop.”