It costs over £1m a year to operate the Cathedral, which currently runs at a deficit and funds from the sale of the land will create an endowment to secure its financial future.

Achieving Guildford Cathedral's vision for 2020

The Dean, the Very Revd Dianna Gwilliams, said "The signing of contracts marks an important step for the Cathedral towards achieving our vision for 2020. The funds generated by the sale will be a vital piece of the jigsaw that will enable us to serve our community more effectively in the future.

"We are confident that Linden share our commitment to maintaining the Cathedral’s place as a key landmark in the region and are sensitive to the very special role it plays in the community. We look forward to working closely with them and others, as part of the consultation process, to ensure that the final scheme creates a Cathedral Quarter, that people will be proud of."

Provide much needed housing to the town centre

"Our belief is that in the fulfilment of our Vision for 2020 we will have a positive impact on Guildford as a whole. This release of land will enable the provision of much needed housing to the town centre area, whilst still retaining much of the open space that is enjoyed by so many visitors to the site. We are also looking for opportunities to increase the connectivity between the Cathedral and the local community and through investment, bring a new vibrancy to this part of the town."

Delivering a prestigious Cathedral Quarter

Paul Dowson, Head of LSH’s Guildford office, said "We are very pleased to be working closely with Guildford Cathedral on this high profile development. We are confident that we have found a developer with the right credentials to deliver a prestigious Cathedral Quarter that will have a positive impact on the town."