Ashberry Homes South Midlands and Bellway Northern Home Counties are both building new homes at a new neighbourhood off Southam Road to the north of the town.
Construction of the new school, which is to be named Cherry Fields Primary School, officially began last month.
The school is scheduled to open its doors to nursery, reception, Year 1 and Year 2 pupils in September next year and will eventually cater for 270 pupils aged up to 11.
Head of sales for Ashberry South Midlands, Elaine Brown, said: “Cherry Fields is not only bringing high-quality houses to Banbury, but also a whole new community of all ages, with the school, public open space and public art set to provide focal points for the neighbourhood.
“We are looking forward to welcoming more families to the development as it continues to take shape.”
More than 140 homes are now completed and occupied at Ashberry Homes’ Cherry Fields development, while 143 sets of residents have moved into their new homes at Bellway’s Hanwell View.
A sports hall, a library and catering facilities will be provided as part of the project, while a multi-use games area will also be available for school and community use.
Sales manager for Bellway Northern Home Counties, Lindsey Davenport, added: “Bellway is committed to investing in the local areas that surround our developments as well as building much-needed new homes.
“We can really see a new community forming here and there’s been a fantastic response from people to the beautiful art installation of the horse which represents the medieval history of Banbury as well as the fact that there’s going to be a new school soon.”
The housebuilders are also delivering a significant public art project within the large area of open space at the development, with the first of four sculptures already installed.
Following the installation of the four-metre tall horse, three further structures – cruck arches, each with a distinct historical theme – are scheduled to be built within the open space as the development progresses.