Halton Housing Trust has selected affordable housing developer Lovell to build a £2.8m affordable housing development in Runcorn, Cheshire.
Lovell has begun work on the scheme to build 33 new homes for social rent at Linkway.
The development will create 18 two-bedroom houses, 12 three-bedroom houses and three two-bedroom bungalows.
Nigel Yates, regional director of Lovell, said: "There is a clear shortage of affordable housing for rent locally which this scheme will help to address.
"We are extremely pleased to be working again with Halton Housing Trust to deliver these much-needed new homes."
In 2012, Lovell finished work on 12 new homes for the Housing Trust at Houghton Street, Widnes.
Paul Mullane, Halton Housing Trust's director of regeneration and investment, said: "The homes at Linkway are an important development for Runcorn and one of a number of schemes we are currently working on across the borough.
"We are happy to have the chance to work with Lovell again following the success of Houghton Street and look forward to how the scheme progresses."
Lovell is part of Morgan Sindall Group.