WHEN Belsay Hall was built in the early 19th century, it was at the cutting edge of design. Contemporaries were taken aback by its bold, new architecture. Even today, 200 years on, it produces strong reactions and is once again at the forefront of modern design.

English Heritage, which now owns Belsay, has invited 12 fashion designers to create art installations inspired by the magnificent neo classical mansion - one of the first Greek revival houses in Britain. The works will be displayed throughout the empty rooms, landscaped gardens and ruined castle in the grounds.

The Belsay estate, which lies to the west of Newcastle, belonged to the Middleton family from the 13th century. They lived in the castle, until 1807, when the then lord and amateur architect, Sir Charles Monk, designed and built himself an impressive new home, inspired by the Greek temple ruins he had seen on his honeymoon a few years earlier.

Belsay Hall is made entirely of stone excavated from the grounds of the estate. Once work was completed, the quarry was converted into a spectacular garden.

The hall itself is little more than a shell, making it a perfect exhibition space. Fashion at Belsay is the fourth major arts, architecture and design event at the hall. The first, Living at Belsay, took place in 1996, and was followed in 2000 by Sitooteries, and Sitting Pretty in 2002.

The curatorial programme at Belsay began almost by accident following a visit by the late fashion designer Jean Muir. She lived at nearby Rothbury and first discovered the hall in 1995, declaring it the perfect setting for displaying design. Curator Judith King was brought in to co-ordinate the first exhibition. The exhibitions that followed have proved just as successful but with FAB, she feels the programme has come full circle.

"I have taken the story right back to its fundamentals," she say. "I've taken it back to Jean Muir. I wanted to look at what fashion designers are doing today, people like Alexander McQueen who are designing quite extraordinary dresses. It may be fashion but it already looks to me like art."

Judith wanted to use a designer who drew heavily on history in their work. Her first thought was Vivienne Westwood but with a major retrospective of her work at the V&A this year, she was too busy to participate and they cast their net wider.

"I started looking at contemporary British designers who referenced the historic in their work and could make something very different from what they usually do. I wanted to give them something very challenging, something that was art rather than fashion. We would let them choose their own space and respond to it, letting their imaginations go."

Once a list of potential exhibitors had been drawn up, it was a question of visiting fashion houses and studios, trying to persuade people to take part. It wasn't an easy task; schedules are tight and workloads hectic, but the secret weapon was Belsay itself. "It's such an unusual setting, so rich in architecture and history that once they see it, even just see the visuals, no further persuasion is needed," explains Judith. "People expect something quite cosy but it's actually very stark. It would have been very shocking in 1807, cutting edge, which is why it's perfect for something like this. It's so nice to be able to re-present it and have these temporary shows which show it in a very different way."

After a tour of the hall, castle and gardens, the designers were invited to choose an area for their exhibit and formally put forward their vision. Everyone had the same budget, including Vien Le Wood, a recent graduate from Northumbria University's fashion school. Each of the previous exhibitions has included work by new and emerging talent and Vien is the 2003/2004 Belsay Fellowship holder.

She spotted a flier on the college noticeboard inviting applications and travelled up to Belsay with the other hopefuls. It was her first visit and she was captivated. "I was really, really impressed. The garden is amazing, really magical. It was a quite misty when we went there and all the ferns and the mosses looked beautiful," she says.

It was the gardens which inspired her fountain dress - a spectacular creation which will stand in the Stable Yard. "I wanted to bring a dress, which is an indoor thing, into the outside. It's an art piece rather than a wearable dress," she explains.

The dress is decorated with shells, pearls, organic seeds, plastics and metals. At the base there are ceramic pots shaped like sea anemones. They collect water, which is then pumped back up through the mannequin to emerge as a fountain.

The exhibition will also showcase new art installations by designers including Alexander McQueen, Paul Smith, Stella McCartney, Agent Provacateur and Zandra Rhodes. The elegant central hall becomes a tribute to Jean Muir, the inspiration behind the event. The elegant Pillar Hall will form a backdrop to some of her best-known garments, created during the 1960s and 70s.

Shelley Fox is one is one of Britain's most prominent womenswear designers and a former winner of the Jerwood Fashion Prize. Her installation will be in the Study and Telephone Room. Padded uniforms and pillows stacked from floor to ceiling will form a tribute to life below stairs at Belsay.

"I wanted to look at the foundations that would have kept a place like that going - servants, gardeners, housekeepers. The servants are always hidden but I wanted to look at their lives and the contribution they made to the house," says Shelley. She is also including a sound installation. Fascinated by the hidden lives of the servants, she delved into English Heritage's archives and found recorded conversations with the staff from some of Britain's great country houses from the 1920s and 30s. These will be woven together into a sound piece so that the voices of the past fill the room. This fusion of past and present, 19th and 21st century, is at the heart of FAB, as is a unique partnership between English Heritage and Arts Council England - two organisations very different in their outlook.

"The Arts Council is all about contemporary art and pushing the boundaries while English Heritage has taken an enormous leap of faith because it's about conservation and standing still," says Judith. "They often wince a bit when I make suggestions but they usually go along with me and they've been very creative in the way they've approached it. It makes for a wonderful exhibition."

l Fashion at Belsay runs from Saturday to September 30. Admission to the exhibition is included in the entrance price, which is open daily from 10am to 6pm. Adults £5, concessions £3.80, children £2.50, family £12.50. Belsay Hall is 14 miles west of Newcastle on the A696. For more information, call 01661 881 638.