A MAJOR housing development is to join the list of proposed eco- friendly towns.

The Cranbrook settlement east of Exeter will initially provide 3,500 homes by 2016, 40 per cent of those affordable, with the possibility of being expanded to 7,500 homes.

East Devon District Council wants to make it an "eco-town" but it will need to meet new environmental standards set out by the Government and will be subject to public consultation and planning approval before going ahead.

Housing Minister John Healey announced yesterday that East Devon would receive £200,000 to help its work on the plans, including an innovative heating and power scheme to serve the community and the planned Skypark development.

The aim is to build a community where houses are close to employment, cutting the need for residents to commute long distances by car.

It includes open green spaces for recreation and education, an extensive public transport system, with a rail link, a network of cycle and foot paths, and community facilities.

The Government target is to see up to 10 eco-towns being built by 2020.

Work was due to start on Cranbrook this month but, as revealed in the Echo, developers say some outstanding planning issues have delayed preparatory building work.