Homes England has secured £123.9m of funding to deliver new infrastructure and plans for the penultimate phase of Northstowe.

The plans for Northstowe, which will be the largest new town since Milton Keynes, have also been given the green light by South Cambridgeshire District Council.

The planning approval covers phase 3A and includes 4,000 new homes, a mixed-use centre, two primary schools, and a range of open spaces for play and recreation, across 210 ha (519 acres). A section 106 agreement will now be agreed to deliver community benefits.

In addition to securing the outline planning for 4,000 new homes, Homes England has secured £123.9m of funding which will enable the agency to continue acting as master developer.

This funding will give Homes England the resources it needs to “build more of Northstowe’s essential infrastructure”, including roads, public transport routes, cycleways, green space and schools.

This infrastructure is a pre-requisite to Homes England opening up land for 5,100 homes, comprising 3,500 homes of phase 2 of the Northstowe masterplan and the first 1,600 homes of phase 3a.

The Homes England settlement is set to create 10,000 new homes in total. The remaining phase – 3B – which provides a further 1,000 homes, primary school and mixed-use commercial zone, as well as a communal area, across 47 hectares (116 acres) will be considered at a later date.

When complete, around 25,000 people will live at Northstowe.

Housing Minister, Christopher Pincher, said: “It is crucial to our levelling up mission that we build the high-quality homes this country needs, where we need them.

“So I am very pleased that thousands of families will have the opportunity to rent or buy a new home in Cambridgeshire and enjoy the cycleways, green space and schools that will be provided for them in Northstowe.”

Ken Glendinning, Regional Development Director South (interim) commented: “Homes England is committed to using its expertise as a master developer to create a well-designed, sustainable new town that promotes a sense of community and pride in place.

“Securing the go ahead for Northstowe Phase 3A from the Planning Committee marks a significant step forward for the town. These proposals, combined with the additional funding will establish a pipeline of new homes at Northstowe for the next 15 years, providing a variety of neighbourhoods and homes of a wide range of tenures.”