This is how much Citu's new community of low carbon homes is expected to be worth

It is being funded by Close Brothers Property Finance, part of the FTSE 250 Close Brothers Group, which supports sustainable residential development.

The development, which began construction towards the end of 2022, has an expected 18-month build schedule, with the first homes available for occupation at the end-2023.

The modular closed timber frame panels are designed in-house and manufactured in the Citu factory, located just a few miles from the construction site.

By taking direct ownership of various stages of the construction process, Citu said it can focus on the reduction of embodied carbon and ‘dramatically reduce’ operational carbon for incoming home owners.

The properties are designed to passive house standards using the passive house planning package.

Founded in Germany, passive house is the world’s leading low energy design standard that reduces heat demand on a home.

The homes will heat the hot water using air source heat pumps and will use mechanical heat recovery ventilation (MHRV) units to regulate the internal air quality and temperature.

The MHRV units, combined with the high levels of insulation, mean that energy required for heating is around five times lower than the average UK house.

The use of 100 per cent on and off site renewable electricity, as opposed to gas, significantly reduces the carbon footprint, whilst also equating to lower bills than the average home.

The development will be set up as a Community Interest Company (CIC) and have a solar array, which will be co-owned by all of the residents and will provide a source of clean, renewable energy on-site.

Located on the banks of the Leeds-Liverpool canal, the homes at Stall will border a green corridor that passes Kirkstall Valley Nature Reserve and the famous Kirkstall Abbey, providing a convenient route for cyclists and pedestrians directly into central Leeds.

There will also be a wealth of natural landscaping and the preservation of existing trees incorporated in the design of the scheme.

Jonathan Wilson, managing director at Citu, said: “Our partnership with Close Brothers has enabled our business, and the communities we are building, to grow.

"We are excited to collaborate on this latest venture in Kirkstall and deliver places and homes with purpose that give equal priority to people, nature and high-standards of living.”

Daniel Joyce, director at Close Brothers Property Finance, added: “Building sustainable housing has never been more important and we are committed to funding future-proofed homes, which are designed to reduce their carbon footprint as well as energy usage.

"We have a strong track record of supporting low carbon developments in the UK and working with the very best developers in the industry to move MMC (modern methods of construction) and passive housing from being a one-off bespoke design model, to a reality for everyday homeowners.

"Developers such as Citu are leading this charge, we’re proud to be supporting them on their journey and look forward to continuing to work with them.”