Bellway Homes has been appointed to develop new properties for Colne Housing in Uttlesford, Essex.
Building work has started on a mixture of 20 properties for affordable rent or part-buy part-rent are being built in Stanley Road, Great Chesterford.
There are currently around 1,500 households in Uttlesford on the housing register.
Cllr Julie Redfern said: "Uttlesford District Council works closely with many housing associations to develop affordable housing, including shared ownership schemes across our district. I am delighted that Colne is embarking on its first development in Uttlesford. I hope it will be the first of many."
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