The scheme, being delivered by David Wilson South Midlands, has benefited from a kick start through £24m Homes and Communities Agency (HCA) funding, which will pay the costs of the Western Bypass development.
During her visit the Minister undertook a tour of the site and visited one of the recently completed show homes. She also spoke to representatives from the HCA and David Wilson to find out how the project is progressing and how partners have worked together to kick-start the project.
Barbara Follett said: "One of the key measures announced in last week's Budget was a £500m fund to unlock stalled housing sites and provide a kick start to the industry. I've been told today that David Wilson Homes will be putting in a bid for some of this money and I urge other developers in the East of England to follow suit.
"I've been very impressed with what I've seen here today. These are high quality, affordable and sustainable homes which are much needed by the people of Bedfordshire - as is the welcome reduction in traffic congestion the new by-pass will bring."
Simon Bishop, Projects Director from the Homes and Communities Agency said; "The forward funding of the bypass is an innovative approach which has opened up land for much needed development. The scheme will provide 2,760 homes with 30% being affordable units, three schools as well as community, health and business centres. It will also provide playing fields and a park and ride scheme into the centre of Bedford.
"By taking this new approach we have been able to work with our partners to deliver a scheme which might otherwise have suffered as a result of the current difficult economic climate."
Richard Brooke, Regional Managing Director for David Wilson East said: "We are delighted to be working with the Homes and Communities Agency (HCA) to facilitate this major housing scheme. This is a landmark project for us and we are extremely proud of the results to date.
"We are also pleased that the project will help bring about the long awaited Western Bypass and are confident that the scheme will become a thriving and well used new community. We look forward to working with the HCA on the delivery of other schemes in the future."
