A ten-year construction programme will start before the end of this year following the £42.6m sale of three plots of land to David Wilson.

The cash will be paid in stages and will fund a major refurbishment programme at the racecourse worth up to £12m.

Dominic Burke, Chairman of Newbury Racecourse, said: “We are delighted to have completed this Agreement with David Wilson Homes.

“It is a key stage in our long term strategy of releasing value from our land assets to develop the facilities and infrastructure of the racecourse.”

Paul Crispin, Managing Director of David Wilson Homes Southern, said: “Today we are announcing a partnership that will deliver one of the most exciting housing developments to take place in the UK in recent years.

“We will be creating up to 1,450 first class homes, whose style and design are focussed on complementing the outstanding and historic setting of Newbury Racecourse, while providing a unique new community for residents.

“We are delighted that this partnership will enable the Racecourse to develop its infrastructure and facilities alongside our development.”