Environmentalists are asking for a plot of land once earmarked for park-and-ride to be handed over for an eco-friendly housing project.

Brighton and Hove's Green Party believes affordable housing at Patcham Court Farm could address the chronic housing problem.

Activists are calling on Brighton and Hove City Council to hand over the 3.6-acre plot free of charge.

They hope low-energy Earthship homes, like the one in Stanmer Park and those planned for Brighton Marina, would be developed by co-operative and housing association builders.

The development would include social enterprise work places and community facilities. The existing cottages and allotments would not be affected.

The idea would be to encourage community ownership, meaning lower land costs and more affordable housing. The concept, which is popular in America, is a new idea for Britain.

According to the Joseph Rowntree Foundation, a social policy research and development charity, 7,000 households have their names on a housing waiting list.

The annual house-building shortfall in the city is 1,200 homes a year, 850 homeless families were housed in 2004/2005, and 40 per cent of young working households in the city cannot afford to buy a home.

City councillor Bill Randall said: "By donating the site to a land trust at no cost the council would take the land costs out of the development equation.

"This would make the new homes affordable to local people on modest incomes, including some of the 7,000 households on the housing waiting list.

"In addition it would meet the aspiration of many Patcham residents who have expressed a wish to see affordable housing on the site.

"All the components are in place to take the idea forward. The city has strong and experienced housing co-ops and a growing social enterprise sector.

"We would, of course, expect the homes to be deep green and want to see the Brighton-based firms involved who have experience in low or zero carbon building.

"They are already planning a scheme of 16 low-energy earthship homes elsewhere in the city. Let's have some more at Patcham Court Farm."

The community land trust would have £1 shareholders and would own the land on behalf of the community. People living in the city would be entitled to buy one share and elect committee members.

Coun Randall added: "We had a meeting about the development of co-operatives and it is certainly one we are going to pursue. We believe our plan is the way forward for Patcham Court Farm which has gone to waste for too long."

The land was earmarked as a possible location for a park-and-ride scheme, seen by many in business as the answer to the city's parking problems.

Such a scheme could not go ahead if the land was used instead for housing. This would clear the way for Braypool, seen as the most viable alternative site for the scheme.

A spokeswoman for the council said: "Patcham Court Farm is currently earmarked for office use, particularly for hi-tech companies. The city needs to strike a balance between employment and housing.

"We are currently carrying out a study into Patcham Court Farm to see how to make the best use of the land. Until the results of this study are published later this year we won't be making any decisions."