The partners plan to begin construction of an initial phase of up to 500 homes from 2029 as they push ahead with one of the UK’s largest urban extension projects. The wider scheme will eventually deliver more than 10,000 homes, 3m sq ft of commercial space and around 9,000 jobs.

The deal sees Homes England, backed by its National Housing Bank, and Hill acquire Cambridge East from airport owners the Marshall Group which will relocate its operations by mid-2029 to clear the way for development.

The Cambridge Growth Company, a subsidiary of Homes England, will work alongside Hill to masterplan and deliver the project, which is being billed as one of the most significant regeneration schemes in the Oxford-Cambridge Growth Corridor.

Plans include schools, healthcare facilities, green space, transport infrastructure and a potential regional training hub to develop construction skills and support long-term employment opportunities.

The development is also expected to benefit from the proposed Cambridge East station, which would strengthen rail links to Cambridge, London, Bedford and Oxford.

The site has been earmarked for development for several years and was identified as a key allocation in the local planning framework five years ago. A comprehensive public consultation programme will now be undertaken ahead of future planning submissions.

Andy Hill, founder and chief executive of Hill Group, said: “Cambridge East is a unique opportunity to create a thriving, sustainable new neighbourhood.

“We will make sure the masterplan for this site is informed by local residents and delivers what the community wants – much-needed infrastructure improvements, amenities, new homes, and employment creation, while setting a new benchmark for placemaking.”