Lovell will build 220 homes at a site in Clayton-le-Woods, Chorley, which has been purchased from the Homes & Communities Agency.
Subject to planning permission, the project will start on site in late summer 2017.
The houses will be in a mix of 18 two-bedroom and 118 three-bedroom houses as well as 67 four-bedroom and 17 five-bedroom houses. The 22 affordable homes will be sold through the Government’s starter homes initiative.
Situated at the northern edge of Clayton-le-Woods, the development is located close to Cuerden Valley Park and the M6.
The scheme is set for completion in 2023 with the first homes expected to be available for sale in spring 2018.
Nigel Yates, Lovell regional managing director, said: “The location gives residents access to some stunning scenery on their doorstep while also providing superb transport connections across Lancashire and beyond. Our house styles have been designed with a variety of buyers in mind, from families to young professionals, while our starter homes will help first-time purchasers take their initial step on to the housing ladder.”