Designer Architype has cited its frustration at mainstream house builders for deciding to turn developer for the 150-house scheme in Kingstone, south west Herefordshire.
The project will be developed by Archihaus, a joint venture between Architype director Jonathan Hines and Swedish businessman Lars Carlsson.
The firm said: “We have developed a new approach to housing development, achieving Passivhaus by design, and inspired by the distinctive qualities of traditional Herefordshire buildings and landscape”
It said it aimed to use off-site prefabrication in a local “House factory” to keep costs in line with standard house building.
Passivhaus reduces heating costs to around £70/year for a 3 bedroom house.
The majority of the 35% socially ‘affordable’ houses on the site will be available as ‘low cost market’ for sale, with priority given to local people in and around the village.