WORK on building two supergreen prototypes for York’s massive Derwenthorpe housing scheme is set to start this summer – with phase one of the project due to begin next spring.

But the new executive director of the Joseph Rowntree Housing Trust, John Hocking said he wants a continuing wrangle over the 540-home model village – involving the European Commission, the Government and City of York Council – to be resolved before the full work gets underway.

He said there was still no decision from the Commission as to whether the council breached European procurement laws by allocating the Derwenthorpe land to the Foundation without inviting tenders from other potential developers.

The proposed development at Osbaldwick, on York’s eastern outskirts, was first mooted a decade ago but has been delayed by fierce and lengthy protests from local residents worried about problems such as increased traffic and the loss of open space.

The Press revealed last autumn the scheme had been hit by further delays in the wake of the property slump.

The Trust said then difficulties for people in obtaining mortgages was a key factor in its postponement of the scheme, which would not now start until early 2010 at the earliest.

Mr Hocking said today the organisation was continuing to monitor the situation, but he hoped the first phase – involving 65 homes – would still be able to start next spring, subject to the European Commission wrangle being resolved.

He said in the meantime, the construction of two prototype detached properties was to start this summer on land at the end of Temple Avenue, next to the Derwenthorpe site. Another existing property at the end of the road had also been bought which was to be refurbished and made environmentally friendly. He said a huge range of features would be introduced to reduce energy usage and waste. “We are trying to see how cheaply we can make it to heat the homes,” he said, adding the prototypes would be used to guide the construction of the 540 homes on the Derwenthorpe site and also properties elsewhere.

Mr Hocking, a former assistant director of housing at City of York Council, said he was “excited” by the Derwenthorpe project, which would help to meet growing demand for family housing in York.