The government funding will enable vital infrastructure work to connect the site.

John Sisk is lined-up as main contractor for the work which will unlock brownfield land at York Central and allow the development of up to 3,705 homes and 1.2m sq ft of commercial development.

A reserved matters planning application for the first phase has already been submitted to City of York Council for a new main road entrance to the development site, a new bridge over the East Coast Main Line, new key cycling and pedestrian routes, improved drainage and landscaping.

Work is set to start on site next year.

Simon Dudley, Interim Chair at Homes England, said: “The confirmation of funding provides that market with some much-needed certainty around a major strategic site at a time when it is planning ahead to recover from the pandemic.

“We look forward to working with all the project partners on behalf of the government to unlock this challenging site so it will become a real landmark development for people living and working in the city, as well as visitors.”

Councillor Keith Aspden, leader of City of York Council, added: “This is fantastic news for York and it clearly demonstrates the importance of the partnership’s continued work and commitment to delivering this ambitious scheme.

“The funding is a vital step to unlocking a £1.16 billion boost to our economy and delivering a new generation of better paid jobs and hundreds of affordable homes, at a time when York needs it most.

“The scheme will also set new standards for sustainable living and clean growth, utilising brownfield land in the heart of the city.”