Salford City Council's planning committee has approved the £430m Pendleton housing PFI to be delivered by a consortium of Chevin Housing Association, Keepmoat and Harewood Homes.
The SP+ consortium will build 1,600 homes and refurbish 1,200 in a 500-acre area of the city. There will also be new streets and footpaths, parks and open spaces, allotments, sports pitches, a shopping parade, community facilities and a city farm.
The scheme will be funded by various sources including Chevin parent Together Housing Group, Allied Irish Bank, Nationwide, Co-operative Bank, and the council's PFI credits. It will be Salford's biggest housing regeneration project and has already been ten years in the planning, including four years of bidding by rival consortia.
Cllr Gena Merrett, assistant mayor for housing and environment at Salford City Council, said: "The plans that were approved today bring us one step closer to realising our vision for Pendleton. Not only will the scheme create better housing for residents, it will also bring the community together, with new public spaces, green spaces and community facilities."
Work will begin on the first phase of the development later this year, which includes refurbishing the area's nine multi-storey blocks.
Tom Miskell, group chief executive of Together Housing Group, said: "For the last four years we have been working closely with both the council and the people of Pendleton to help shape our proposals. We're now looking forward to delivering our scheme and creating neighbourhoods that the people of Pendleton can be proud of, both now and in the future."
GVA advised SP+ on planning for the development. SP+'s project team includes Latham Architects and PKF.