The team - which also included housebuilder Crest Nicholson - saw off competition from Richard Rogers and HTA to land the top prize.
The scheme was picked because of its environmental credentials. It will have 70 per cent lower carbon emissions compared with 2002 standards. It includes renewable technology, a combined heat and power facility and rainwater collection and recycling.
Kelly said: 'We need to build more homes to meet demand, which requires higher densities and makes good design even more crucial. Design and Access Statements and the Design for Manufacture competition show that the Government is raising the bar.
'We also want developers to push standards further so that local authorities can insist on, and say 'yes' to, better buildings and places,' she added.