A hundred new homes and a multi-storey car park could be built in the heart of Norwich at a cost of up to £17m - to kickstart the regeneration of part of the city centre.

Norwich City Council wants to build the homes on the current site of the Rose Lane car park, with a new 600-space decked car park built on the corner of Mountergate and Rose Lane.

Council leaders, who last night agreed in principle to the homes plan, say they need to take a lead to encourage private developers to invest in the King Street area - to breathe new life into that part of the city.

The council's plan is that the new car park, which will cost between £6m and £7m, is built first, with the 200-space Mountergate surface car park still used until the replacement is completed.

After that, housing will be built on the existing car park, with up to 100 homes built on the site.

The city council will build those homes, which could cost up to £10m. About 30 of those homes would be affordable homes but the others will be private, with the council able to sell or rent them, generating money for the authority.

Mike Stonard, cabinet member for planning, transportation and sustainable development, said: 'We will be creating the space needed to bring 100 high quality homes to the city centre by consolidating and improving the existing parking provision.

'This will help create the right environment to kick-start a much-needed cycle of investment and renewal in the area for the benefit of the city as a whole.'

Last year, David Lock Associates were commissioned by the council and the Homes and Communities Agency to draw up a blueprint for potential future development in the King Street area.

Brenda Arthur, leader of Norwich City Council, said: 'Schemes such as these that take a holistic approach to regeneration are vital in bringing much-needed homes and jobs to Norwich.'

Both the car park and the homes would need planning permission and there would be public consultation.

But Stephen Little, Green city councillor for Town Close ward, questioned whether the creation of more car parking spaces ran counter to the council's own policies.