ECO-FRIENDLY affordable homes now look likely to be built in Colchester’s “Cultural Quarter” off Queen Street Plans for an upmarket block of flats were originally proposed for the old bus station ticket office site, but have been shelved as being too hard to sell, because of the recession.

Instead, talks have started with housing associations about building “green” social housing on the site.

Ian Vipond, Colchester Council’s executive director, said the aim would be to build shops on the ground floor and about 30 homes above them.

He said: “We have been looking for a housing association which might be able to build us quality, affordable housing with shops below.

“We would like to see a start on the scheme next year.”

Beverley Oxford, councillor responsible for neighbourhoods, said the new homes would be let to some of the 3,500 families currently on the council’s waiting list.

She added: “We have so many on the list and we need to give people who need homes as much help as we can.”

Last week, the Gazette revealed the council and developer, Garbe, had agreed to get plans for the area moving, with a deal likely to be signed next month.

As part of the agreement, Garbe will be given the Roman House, in Queen Street, the former Keddies department store building.

It would also get the neighbouring St James House, formerly Shoeworld.

Roman House would be converted into into a 90-bedroom, three-star hotel, while St James House would also be completely refurbished.

Part of it would then be handed back to the council for use as offices in which creative people, such as website creators or graphic designers could launch new businesses.

Mr Vipond suggested some of the people working at the centre, to be known as the Hub, might even live in homes in the new bus station development.

He said: “There are substantial housing needs around the borough and some of that need is for housing in the town centre.

“What we’re looking for is a green scheme. We are looking for a housing association with a good record for finding tenants who want that sort of green, town centre environment, where there’s quite a lot of commercial activity.

“It might be people who particularly want to interact with the Cultural Quarter.

“You can imagine young artists or people working in the media might want to live there.”