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Cornerstone, the firm set up by former Partnership for Schools boss Tim Byles, has agreed a deal with Plymouth council to create an 86-home zero-carbon community in North Devon.

The partnership between the council and CornerstoneZED - a joint-venture between Byles鈥� Cornerstone Property Assets social investment company and architect Bill Dunster鈥檚 Zedprojects - will see the village built at Bickleigh Down, which is expected to become a regional hub for low-carbon industries.

Of the new homes proposed, up to 66 would be family properties with the remainder being flats, while at the development鈥檚 heart would be a village green and nearby would be allotments.

Cornerstone chief executive Tim Byles said the scheme was a 鈥渢ruly innovative development鈥�. He said the homes would be so energy efficient, each would generate enough income from energy produced that the cost of each property鈥檚 utility bills would be covered, with the potential for payback from local energy providers.

Plymouth City Council leader Vivien Pengelly said the project would put the authority at the forefront of the eco-homes industry.

鈥淭his is exactly the type of innovative economy that we need to develop,鈥� she said.

Byles said Plymouth anticipated signing an option agreement in relation to the project in the coming months, after which a formal planning application would be submitted.

He added that construction could begin later this year.