The University of Cambridge has been granted planning permission for its proposed mixed-use development in north-west Cambridge, which has an estimated end value of up to £1bn.

Local planning authorities have approved plans for 1,500 homes for “key university and college employees”, 1,500 homes for sale, accommodation for 2,000 students and 1m sq ft of research facilities. The University has been formulating the proposals since 2003.

The 348 acre site (pictured) is a triangular area on the edge of Cambridge, bounded by Huntingdon Road (A1307), Madingley Road (A1303) and the M11. Only about 90 hectares will be developed and around 50 hectares - over one third of the site - will be open space

The university said today that around one third of the site would be used as public open space for sports, informal recreation and ecological use.

Phase one of the development will be subject to approval from the university’s Regent House, which will be sought in early 2013, according to an announcement from the university today. This will comprise around 530 homes for University staff, some 426 homes for sale, accommodation for 300 students and the local centre, it said.

Vice-Chancellor Professor Sir Leszek Borysiewicz said: “This development is a major part of the University’s long term future. “It will provide much of the residential and research accommodation that the University needs as it grows over the next 20 years.”

“Attracting world class academics, researchers and research partners is vital for the University to retain its world class position amid growing global competition. Being able to provide high quality, affordable housing in a thriving community will be an important element of our offer to them.”

The University is currently seeking residential and commercial development partners for the different elements of phase one, and has instructed Bidwells to market the residential element. It is hoped that phase one will start in early 2013 and be completed by mid-2015.