A new housing development proposes that 40 per cent of homes should be affordable and that there should be almost no car parking.

The old Endeavour garage site on the A23 Preston Road could set new standards for housing in Brighton and Hove.

This £15 million scheme by Karis Developments and Southern Primary Housing will be the first major project in the city to have 40 per cent low-cost housing if approved by planners.

There will be 126 homes in the development close to Preston Park and 49 of them will be low-cost. Some will be for rent and 13 will be offered under a shared ownership scheme.

The two partners have worked together previously on a much smaller scheme at Connaught Road in Hove which is currently being constructed.

But the Preston Road scheme will offer the city its largest chunk of affordable housing so far as part of a private scheme.

The city council's draft Local Plan proposes that 40 per cent of housing in all but the smallest private schemes should be low-cost.

This is likely to be challenged by some other developers at a forthcoming public inquiry but Karis and Southern Primary Housing believe it can work.

Cabinet housing councillor Tehmtan Framroze stressed he had not seen the designs for the Preston Road scheme and could not comment on them.

But he said: "In principle I welcome a large development which will provide 40 per cent low-cost housing provided that the rest of it is acceptable."

He stressed the vital need for low-cost housing in a city where house prices were soaring, putting them out of reach of many people.

Karis managing director Josh Arghiros said: "This will be a test of local government. They are stipulating 40 per cent in the Local Plan and we are providing it."

Last week the Joseph Rowntree Foundation produced a report saying the shortage of homes in Britain could lead to a deepening housing crisis.

It said that most new homes could go on recycled brownfield sites and said the problems were at their most acute in southern England.

The report suggested innovations in housing design to make it possible to build attractively at higher densities.

Schemes on brownfield sites could plug into existing transport routes and shops, helping to minimise pollution and congestion.

By building on a significant scale, it was also possible to fund more low-cost housing and provide community amenities.

Mr Arghiros said: "This report could almost have been written for the Preston Road scheme."

Southern Primary managing director Richard Hill said great care had been taken to prepare a scheme which would be acceptable.

This was confirmed by Simon Bareham, senior planner for DMH, which has prepared a submission for the council.

Transport consultants have also been brought in to argue that even though up to 450 people will live on the site, there will not be a big impact on the area.

A car club will be created so people can share the use of transport and hardly any parking will be provided on the site.

Developers hope most people in the scheme will rely on other forms of transport. There are good bus services nearby and the site is within walking distance of two railway stations.

There are cycle routes nearby and the 66-acre Preston Park is only a few yards away. The scheme again dovetails with council objectives to reduce traffic.

But objectors, led by Adrian Slack of Springfield Road, believe the parking proposals are unrealistic and that they could cause problems in the area.

Mr Arghiros said the scheme would have a beneficial effect on London Road. It would have an even greater effect on the existing shops in Preston Road and Beaconsfield Road.

Many people from the development will use Preston Park where the developer was prepared to consider funding some improvements.

Mr Arghiros said great care had been taken with the design of the buildings to fit in with the environment.

This includes the existing blocks of flats in the area, the villas of Springfield Road, the park and the railway viaduct across Preston Road.

There will be courtyards within the scheme to give it an airy feel and to provide places where people can meet.

Mr Arghiros said: "This could be the shape of things to come. It could set the standards for future schemes in Brighton and Hove.

"We need to get support from people so that we can do it again."

l A model of the development is available to view during office hours at Bartholomew House opposite Brighton Town Hall in Bartholomew Square.