The Northstowe project would see the creation of a new town between Huntingdon and Cambridge.
The Government now wants to commission new homes itself if developers fail to meet the demand for house building and Northstowe could be used for the scheme.
It comes as the Government announced its new national infrastructure plan - which will also see £44 million spent on building a new railway station at Cambridge's Science Park.
Northstowe in Cambridgeshire will be the model for Government plans to take direct responsibility for ensuring the building of new homes,Read the full story ›
A homeless charity has warned that 93 per cent of properties for sale in the East of England are unaffordable for first-time buyers.
Shelter says there black spots across our region where the average working family as little chance of getting on the property ladder.
Their research showed that Cambridge and Uttlesford in Essex were among worst areas for affordable housing
Property website Rightmove says it's recorded the largest house price incease ever for this time of year.
It comes as the Bank of England Governor Mark Carney has expressed doubts over the sustainability of the current growth.
Between April and May East Anglia saw average prices increase by 1.4 per cent to more than £242,000.
The East Midlands, including Northamptonshire, saw a jump of 2.3 per cent to more than £179,000.
Protestors are continuing to fight a proposed new town in Cambridgeshire ahead of a council vote.
They're concerned South Cambridgeshire District Council's plans for what it calls 'much-needed housing' at Waterbeach will put strain on local services and infrastructure.
If given the go-ahead, the plans would also include a new village at Bourne Airfield and an extension to the Cambourne development near Cambridge.
Click below to watch a report from ITV News Anglia's Elodie Harper
One in 10 people in East Anglia is starting their New Year dogged by worries over how they can afford to pay their rent or mortgage, according to charity Shelter.
Some 10% of people in the region said they will fret about keeping the roof over their heads during January, as the hangover from Christmas bills kicks in.
More than four in 10 (42%) said they expected to struggle or fall behind with their rent or mortgage in 2014.
Across the country, 9% of more than 4,000 people surveyed said they would be worried about rent or mortgage payments this year.
Families were found to be the worst affected, with more than two-thirds (70%) of rent or mortgage payers with children saying they are either finding it tough to keep up with their payments or have fallen behind, compared with 63% of the general population of rent or mortgage payers.
Nationally, more than one in three (38%) expect to struggle or fall behind with their rent or mortgage over the next 12 months, the research found.
Shelter warned of a worrying "ostrich effect" of people being unable to face up to their financial difficulties, with nearly one fifth of people (18%) saying they had not opened post if they thought it was a bill or late payment reminder.
One in eight (14%) people admitted to putting correspondence in the bin without opening it - with this figure rising to one in six (16%) in the East of England.
Research has shown hundreds of people across the region fear they will be unable to meet rent or mortgage payments this month.
The study by housing charity Shelter, found that just over 40 per cent of families in the East expect to fall into arrears.
According to RICS, regional prices will rise by the following percentages in 2014:
- London - 11%
- East of England - 10%
- East Midlands - 10%
- North West 7%
- Scotland 7%
- South East 7%
- South West 7%
- Wales 7%
- West Midlands 7%
- Yorkshire and Humberside 7%
- North East 5%
- Northern Ireland 4% .
House prices surged by 5.5% year-on-year in October to reach a new high, with the East of England among the regions to see prices rise.Read the full story ›
Plans for up to 1,300 homes on the outskirts of Cambridge are about to go on show
The new urban quarter, on land north of the Newmarket Road, has been proposed by the Marshall group of companies.
As well as houses the plans include shops and a school.