The deal will see Skanska Residential develop the 4.1 acre Ensleigh South in Lansdown to the north of the city.

The site was bought from the Ministry of Defence as part of the first wave of their divestment of land in the area.

Skanska will now work with Stirling Prize award winning architects Feilden Clegg Bradley Studio to develop concepts and plans for the new site, which will include 35 – 45 new properties developed to Level 4 of the Code for Sustainable Homes.

Construction on site is scheduled to start in mid 2013, with the first homes being ready to move into in mid 2014.

Magnus Andersson, President of Skanska Residential Development UK said, “I am delighted we have secured our first land deal in the South West of England.

“This part of the country was an area we identified when establishing our plans for a residential development business in the UK, as one that could offer exciting long term opportunities.

“Bath is an excellent location, where we see potential for further growth and development in the residential sector.”

Skanska Residential bought its first site in Cambridge in January last year.

Construction began and at the end of last month and 14 ‘Homes by Skanska ‘ have already been reserved.

A second site was bought in October 2011 in Cambridge where a full planning application will be submitted this summer.