It will initially demolish around 125 existing homes to clear the way for 260 new houses at the Bulford Camp.

The first 60 will be ready for occupation by August next year, with the whole project expected to be completed by the end of December 2012.

1st Battalion The Royal Anglian Regiment, known as the Vikings, are currently based at Queen Elizabeth Barracks in Pirbright, Surrey, but will move to a new, £110m, purpose-built barracks at Bulford in 2011.

Geoff Minshell, head of Bovis Lend Lease Defence, said: “We have devised a scheme that will create a safe, sustainable community where families will want to live.”

The Canadian Estate Project will be delivered for Defence Estates by means of a stand-alone prime contract.

The new homes will comprise 195 three-bedroom properties and 65 four-bedroom houses. Roads, infrastructure and associated landscaping will also be provided.

The new houses will meet MOD accommodation scales and will be Standard 1 for condition and Grade 1 for charges.

They will also be constructed to achieve Code for Sustainable Homes Level 4, meet the latest building regulations and be consistent with the UK low-carbon transition plan.

The project also includes several houses that can be easily adapted for occupation by the severely disabled.

Properties will have wheelchair access to all rooms, level entry showers, and the ability to accommodate hoist equipment for bathing, and a through floor or stair lift, without the need for subsequent structural alterations.