Knowsley Housing Trust, part of the First Ark Group, has started work on its first scheme using funds from the Homes & Communities Agency's National Affordable Housing Programme.
The £737,000 project at Bracknell Avenue in Kirkby will provide six new homes for affordable rent. The houses are being built by Knowsley-based Fairtree Homes.
KHT was awarded £5m from the HCA in the NAHP bidding programme last year. The funds will pay for 229 homes across Knowsley from now until 2015.