Major proposals to make way for more than 500 new homes in north Colchester have won a £5.5million cash boost from the Government.

East Anglian Daily Times: Artist's impression of how the new leisure development at Northern Gateway in Colchester could look. Picture: COLCHESTER BOROUGH COUNCILArtist's impression of how the new leisure development at Northern Gateway in Colchester could look. Picture: COLCHESTER BOROUGH COUNCIL (Image: Archant)

Council bosses put in a bid for a portion of the £98.6million Housing Infrastructure Fund (HIF) being offered by the Ministry of Housing, Communities and Local Government last year.

Today, the department announced details of several successful schemes – including plans for Colchester’s Northern Gateway and the Ipswich Garden Suburb development.

Now the Colchester bid, which outlines plans to relocate the town’s rugby club and other associated sports facilities to make way for 560 new homes, is being bolstered by the multi-million pound investment.

Announcing which housing bids had been successful this morning, housing secretary Sajid Javid said: “My priority is building the homes this country desperately needs.

East Anglian Daily Times: An artist's impression of Turnstone's plans for the Northern Gateway leisure development. More than 500 new homes are set to be built close by. Picture: TURNSTONEAn artist's impression of Turnstone's plans for the Northern Gateway leisure development. More than 500 new homes are set to be built close by. Picture: TURNSTONE (Image: Archant)

“This first wave of investment in projects across the East of England will help get up to 22,000 homes off the ground, making a huge difference to communities across the region.

“This is just one of the many ways this Government is taking action to get Britain building homes again.”

The HIF funding will provide a 500m long pedestrian priority boulevard and deliver key highway improvements connecting the site to the existing roads network.

Speaking shortly after the grant was announced Colchester councillor Annie Feltham, responsible for commercial services, said: “I am absolutely delighted that we have secured such a substantial sum to support our investment in vital new infrastructure for the Colchester Northern Gateway development.

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“This is an extremely exciting project that Colchester can be proud of and will bring numerous tangible benefits to the borough including much-needed new housing and employment opportunities.

“This additional funding is recognition by the Government that Colchester is continuing to build on its reputation as a major centre for job creation and as a magnet for growth within the region – and deservedly so.”

The homes will be located next to a new leisure complex planned for the same site, which is set to include an 80-bed hotel, 12 bars and restaurants and a sports arena.