Mulbury Homes is to build nine family houses on two neighbouring sites in Stretford, after planning consent was granted by Trafford council.
Lymm-based Mulbury will build the £1m scheme in Derbyshire Avenue for Arcon Housing Association.
The development will fill sites that were cleared years ago and have been vacant since. The new development will provide five three-bedroom houses on one site and four on the other 100 yards away. The houses will meet level 3 of the Code for Sustainable Homes and comply with Housing Quality Indicators. The homes will also incorporate Secured by Design features, which focus on crime prevention.
The scheme is being funded by a grant from the Homes & Communities Agency. Building work is expected to begin in the coming weeks and is scheduled to complete in early 2013.
Greg Mulligan, director of Mulbury Homes, said: "This scheme will deliver energy-efficient family homes and bring these two neglected parcels of land back into use in a way that benefits the broader community. The development will rejuvenate the area, as well as providing much needed affordable housing.
"We will make sure the new homes fully meet residents' needs by working closely with Arcon Housing Association."
Peter Schilizzi, chief executive of Arcon Housing Association, said: "We are very happy to be working with Mulbury Homes on this new project to deliver affordable housing for rent with support from the Homes & Communities Agency and Trafford council."