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Plans to transform a disused railway depot in Gloucester and build 315 homes have been approved.

Eutopia Homes has been given the green light by Gloucester City Council for the development opposite the Royal Gloucestershire Hospital, which will comprise 228 apartments and 87 townhouses.

The company said the project, named Great Western Yard, would create a combined 490 direct and indirect jobs annually during the construction phase and add a further £10.1m to the local economy every year once complete.

Eutopia Homes purchased the eight-acre brownfield site in the city centre, adjacent to Gloucester railway station, from Network Rail in December 2021.

Bosses at the firm said the scheme would help address a “stark supply-demand housing imbalance” in Gloucester.

Director Lorna Henderson said: “We are investing in Gloucester for the long term through the provision of new housing, as well as direct and indirect support for the local economy, including through the creation of construction jobs.

“The council outlined its long-held ambition for the redevelopment of this brownfield site and we have worked closely with them throughout this process. We look forward to reinventing this neglected site into one that serves a purpose for the local community.”

According to plans submitted for the new neighbourhood - designed by Darling Associates Architects - four apartment buildings reaching a maximum of five storeys will include studio, one and two beds. The townhouses will be two- and three-bedroom, with all homes having access to private outdoor space through a balcony or garden.