MAJOR new settlements to the east and west of Colchester could provide 21,000 extra homes over the next two decades.

The bold proposal is among the options outlined by Colchester Council to meet anticipated demand for 1,065 new homes a year in the borough.

Once approved by the Government, the council’s Local Plan will set out the way the borough will develop over the next 20 years and where new homes, industry and facilities will be built.

The draft Local Plan suggests 15,000 homes should be build to the south-west, along the A120 near Marks Tey.

A further 6,000 would be built on the other site of Colchester, to the east of Greenstead.

In both cases, the developments would spill over into the neighbouring districts – Braintree to the west and Tendring to the east.

The two settlements are one of three options suggested to meet demand for housing between now and 2032.

The other two options would involve a single, large development, on one side of the town or the other.

More homes are also proposed in Wivenhoe, Tiptree and West Mersea, all labelled “rural district centres” in the draft plan, with outlying villages also expected to accommodate what the plan describes as “proportional growth”.

A major housing development to the west of Colchester has previously been mooted as a way of getting money to upgrade the A120 to a dual carriageway.

The A120 proposal was put forward by Gateway 120, a consortium of landowners and farmers, which initially spoke of building 11,000 homes.

This has now increased to 15,000 in the light of forecast demand for homes.

The draft Local Plan suggests the development would be split, with 7,500 homes in Colchester borough and a similar number in the Braintree district.

Similarly, the 6,000 homes to the east of the town would be divided between Colchester and the Tendring district.

Bill Frame, chairman of Colchester Council’s local plan committee, said: “Over the years, we have managed to fulfil the number of houses we needed to build, but we are getting to the stage where we have to look a bit more outside the box, in terms of where we go.

“We have been talking to Tendring and Braintree about the prospects of joint working.”

Public consultations on the draft Local Plan are formally due to start on January 16 and close on February 27.

Mr Frame added: “It is going to be over the next ten to 15 years, so it isn’t a case of suddenly dumping thousands of houses on someone’s doorstep.

“It is going to be a gradual process and infrastructure has to go with it.

“That is one of the key things.

“We need to make sure we have adequate school provision.

“It is not just a case of building houses, but of building whole communities.”