Housing secretary Angela Rayner has welcomed planning approval for the first phase of a £2bn regeneration scheme in York.

City of York Council has granted detailed consent for the first phase of York Central, clearing the way for work to begin next year.

The wider 110-acre development has been in the pipeline for around 40 years and is one of the largest regeneration projects in the North.

Rayner described York Central as a “fantastic opportunity” that would unlock “one of the biggest regeneration projects in the country”.

“We’re turning years of talk into action to drive growth in every region, raise living standards and build the homes communities desperately need,” she added.

McLaren Regeneration, working with Arlington Real Estate, plans to deliver more than 1,000 homes during the first phase. At least 20% will be allocated for social and affordable rent and sale.

The plans also include a new commercial district, hotel and western entrance to York railway station.

New public squares and a park will form part of the development. Cycle routes, footpaths and courtyards are also planned to improve connections with the existing city.

The wider York Central development represents more than 40% of the size of York’s existing historic city centre. It is expected to provide new homes alongside office, retail and leisure space.

Public investment and private capital are being used to deliver the scheme.

Construction is expected to start in 2027, with the first phase scheduled for completion in 2030.