The joint venture bidders are vying for Chobham Manor, which has been desgned as a traditional low-rise family neighbourhood of terraced and mews houses.

The three  bidders will now enter into an intensive series of competitive dialogue meetings to formalise detailed proposals before they are submitted in June.

Located between the Athletes’ Village and the VeloPark, the new neighbourhood will help to address the local need for larger homes with 70% of the 800 homes offering much needed family housing.

Around 40% will be houses with gardens – amounting to almost a quarter of the total number of new houses registered in London last year.

The Legacy Company will appoint its partner by the summer in order for the first homes to be ready in 2014.

Andrew Altman, Chief Executive of the Olympic Park Legacy Company, said: “Chobham Manor will set the benchmark for quality design and sustainable living on the Queen Elizabeth Olympic Park.

“The three shortlisted parties are all capable of delivering to the highest standards and creating a thriving family community. They reflect the strong market appetite to develop family housing in the area.

“Legacy plans are more advanced than any previous Olympic host city and we aim to continue this by appointing a preferred bidder before the 2012 Games.”

Chobham Manor will offer a mix of terraced housing, mews housing and duplex apartments within tree lined avenues, intimate streets and open squares. It will sit adjacent to the Athletes’ Village which will be converted into 2,800 flats after the 2012 Games.

It is one of five neighbourhoods to be developed on the Queen Elizabeth Olympic Park, with up to 8,000 new homes being built over the next 20 years, in addition to East Village.