'If we get this right, we could change the city and the way people live in it'

Ten or so years ago, Paul Chatterton, then in his late 20s, was looking to buy a house. Struggling to find an affordable mortgage, he came to the realisation a problem shared might well be a problem halved. The Xanadu housing co-operative was born.

"There was a group of us who just thought why not invest in a property together," says Paul, a geography lecturer at the University of Leeds. "We scribbled a rough idea for how the co-operative would work and from there a business plan took shape and we went to the bank."

With a loan secured, a house, big enough for six people was bought in Woodhouse, Leeds. Paul admits shared living is not always easy, but while he did eventually move out of Xanadu in need of private space, his time there left a lasting impression.

Now Paul and various other families are putting the finishing touches to a much bigger plan – a 20-home purpose built eco-friendly co-operative in the west of the city.

The blueprint is already well advanced and as well alongside the individual properties there will also be a central common house with shared facilities, where the families will cook and eat together two or three times a week. Bicycles will be the favoured mode of transport, with any cars parked on the edge of the development.

"Rather than having just one house we realised that if we could get this right we could change the city and the way people live in it," says Paul. "We were always clear from the start the land had to be in an urban area and eventually settled on a plot in Bramley.

"There are so many different aspects to the design, from the homes themselves which will be built largely from wood and straw to the fact there will hardly be any artificial heating and no individual washing machines or tumbledryers.

"However, it's not about living in a green bubble. We've already had a number of meetings with the wider community who we want to share the space with us and the feedback has been incredibly positive.

"For all of us involved it's about showing it is possible to build a housing development which also fosters a sense of community. There will be lots of open green spaces and the common house will effectively be a hub for everyone passing through."

The 3m Low Impact Living Affordable Community (Lilac) is making its way through the planning process and funding – a combination of bank loans, the members' own deposits and investments and a 400,000 Government grant – has already been secured.

The scheme will offer a mix of accommodation from one-bedroom flats to four-bed family homes. Households will pay 35 per cent of their income towards their equity share, with the smallest property requiring an individual or joint income of just 19,000.

"We've always been concerned about the environment and try to do our bit," says Robin Fishwick, who along with his wife Sarah and two young daughters, have already signed up to Lilac. "But there came a point when we decided we wanted to do more and a scheme like this just seemed so right for us.

"There is a danger that these developments are hermetically sealed away from the rest of the community and one thing which has really impressed us about Lilac is the overlap with those who will be living nearby."

More than half the homes in the development, which hopes to be completed by 2012, have already gone, but the key to its success will be ensuring the right mix of families.

"What's all really important is that there is a range of ages and backgrounds as that's the only way of creating a vibrant community," says Sarah, who works in education. The girls are really excited. There was a little apprehension when we talked about moving, but as soon as they realised they could take their toys with them all that disappeared."