The 1,500-home South Seaham garden village is being developed in a partnership between Durham County Council, Tolent and housing association Home Group.
Located close to the A19, on the outskirts of the coastal town, the proposed South Seaham development was granted garden village status earlier this week and already has planning.
A new primary school, a park and village square, and a health and well-being community hub will also form part of the development.
Working closely with North East based Home Group, Tolent, will build around 1,000 of the new houses, of which 750 will include a variety of new starter homes and homes for older people, as well as those in need of assisted living and dependent care facilities – a totally inclusive community.
Land for the remaining 500 houses will be sold to the private sector, and profit made from the sale will be used to subsidise the affordable housing and community facilities including construction of a school and village centre.
John Wood, director of Tolent, said: “Receiving garden village status is befitting of such a great development that really will be a national exemplar.
“Our vision to create a truly sustainable community with a mix of distinctive, high quality housing that improves quality of life is what we’re doing here, as well as creating jobs for the next decade and beyond.
“I’d like to take this opportunity to thank Durham County Council for their support of what has been a shared vision for a long time.”
It is anticipated that the development will sustain 500 construction jobs.
A training academy will be established on site with the Construction Industry Training Board and will give young people apprenticeship opportunities to develop their skills to become tradesmen and women, and other professions.