More than 80 affordable homes could be built on a key site in Ramsey, helping to reduce a shortfall of the properties in the district.

Housing association the Accent Group has applied to build 86 of the homes off St Mary's Road, which forms part of the long-awaited northern gateway to the town and is the second bid in a matter of weeks to revive development schemes there.

The land, near the Tesco store, is divided by the High Lode waterway and already has consent for 110 homes.

Accent, which has more than 20,000 homes under its management, has applied to Huntingdonshire District Council for planning permission to built the houses and apartments, taking some of the design features of the nearby converted mill building.

The site is close to a proposed retail, employment and business development on nearly 16 acres put forward by Greystoke Land and which is also being considered by planners at the district council.

It has existing planning permission for development going back five years.

The proposed new homes would be clustered around High Lode on the largely derelict site between St Mary's Road and Stocking Fen Road.

In its application, Accent, which has offices in Peterborough, stressed that 100 per cent of the homes would be affordable: "Under planning policy LP24 there would normally only be a requirement of 40 per cent affordable provision which would equate to 34 dwellings.

"These proposals therefore deliver an additional 52 affordable homes beyond the requirement."

It said: "Of the 86 new homes, 42 will be rented, both social and affordable rent, and the remaining 44 dwellings will be shared ownership.

"As there is a significant over-provision of affordable homes there is a greater proportion of shared ownership properties when compared to policy LP24, approximately 30 per cent.

"The proposals however, still far exceed the number of rented units that would be expected for this size of development. It will deliver 42 dwellings as opposed to 24 required."

Accent said: "The proposed development would provide a clear benefit in helping to meet the current affordable housing shortfall in Huntingdonshire. One hundred per cent of the development will be affordable with a mix of social rent, affordable rent and shared ownership homes provided."

The association added that the scheme would bring "significant and social benefits" with a boost to builders during the construction phase and to the commercial centre of the town which was just 500m away.