Kier Living has started building work to develop 90 new houses in Cornwall.
The Homes and Communities Agency and Cornwall Council awarded £3.2 million funding to Coastline Housing to build the new homes.
The development at Heartlands in Pool will include a national first, with 20 of the homes on site being built for the Government's new Rent to Buy scheme. In addition, 54 homes will be built for affordable rent and 16 homes offered under a part-buy, part-rent scheme.
Under the new Rent to Buy scheme, the Government offers low cost loans to landlords to build homes to be let at sub-market rent for a minimum of seven years to households who have never owned a home before.
Joyce Duffin, Cornwall Council Cabinet Member for Housing and Environment, said: "There is a significant demand for local needs housing with 441 households in the immediate area currently registered with Cornwall Homechoice. Cornwall Council remains committed to delivering affordable homes for local people and this new development from our partners, Coastline Housing, will go some way towards meeting this need."
The homes are expected to be completed in Autumn 2017.
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