Crest Nicholson and the Homes and Communities Agency have launched a £200m, 1,100-home development in Milton Keynes.
Outline planning was granted in October 2011, with detailed planning for the first phase, including 231 dwellings and a new district centre, being granted in March 2012.
The development aims to form a new community, with homes sized between two and five bedrooms in a parkland setting next to the river Ouzel.
Smaller apartments, of one or two bedrooms, will be clustered around the neighbourhood centre, with retail and restaurant facilities.
A third of the first phase is designated as affordable housing, with both rented and shared ownership homes.
A development agreement was reached between Crest and the HCA as landowner, with preparatory works taking place earlier in the summer.
CN this week revealed that the HCA has come under pressure to dispose of its land bank.
Crest Nicholson executive board director Chris Tinker said the firm was “delighted to be commencing the delivery of this landmark and much anticipated development at such a crucial time in the economic cycle”.
“We would like to pay testimony to the officers and members of Milton Keynes Council who have worked hard with the Crest and HCA project team to bring this scheme forward,” he said.
“I have no doubt that through the jobs created and quality new homes it will both stimulate growth and meet pent-up housing need.”
He added that local interest had been ”incredible”, and that the firm looked forward to detailed planning on the next phases.
The first homes on the project will be available to view in November, with the neighbourhood centre opening in spring 2013. The development will take eight years to complete, with land being progressively drawn down in phases from the HCA.
HCA head of midlands south east Charles Amies said: “We know through working closely with Milton Keynes Council that Oakgrove is an excellent location for housing and the size and scale of development we are delivering supports the Council’s ambitions for more new homes.
“We are pleased to be working with Crest Nicholson who is building both attractive and high quality homes. We are making good progress now on the build and are confident that the scheme will be popular in Milton Keynes.”