New Town in Colchester is being geared up for its biggest single new housing development since the First World War.
The parcel of land earmarked for the estate is the former Carter Saunders scrapyard off Magdalen Street.
It is on the market "for offers in excess of £800,000" and has attracted a healthy interest, according to estate agent Boydens.
Plans drawn up by Colchester Council ten years ago, and again in 1991, called for a development of family houses and flats.
But it is hoped that derelict land, including the former coalyard and land previously used by the railway, can be incorporated into a more ambitious scheme with a play area and landscaping.
The former St Mary Magdalen Church nearby has been developed into family homes by Colne Housing Society.
And the opening last year of the YMCA Foyer has given new life to the run-down frontage of Magdalen Street.
The two-acre scrapyard site is one of the highest parts of Colchester with views stretching over St Botolph's to High Woods.
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