Some 40 new homes will be built in Saxilby, just outside Lincoln, after the sale of a development site.
Lincoln chartered surveyor Banks Long & Co sold 1.84 acres of land between William Street and Bridge Street in the village, with planning permission for 41 houses by Pride Homes.
Pride Homes have already started work on the site in order to prepare it for the new affordable homes.
Joint managing director Glynn Hughes said: “We are building 41 affordable homes, which will offer buyers a choice of two, three or four-bedroomed properties.
“There is an element of social housing with the inclusion of four units of this type within the development.
“Other developments which we have completed in the Lincolnshire area include those in Waddington, Sudbrooke, Swinderby and Newark Road, Lincoln.
“We have maintained momentum throughout the recession and we are aiming to complete the Saxilby site within two years.”
Banks Long & Co Director James Butcher said: “Saxilby currently has about 4,000 residents and we believe these new properties will prove a popular attraction for prospective buyers.
“This site is close to Lincoln and convenient for fast access to the Lincoln Bypass, dualled A46 and the wider East Midlands.
“Saxilby itself also offers families a good range of essential facilities.”
He added: “The recent sale of the site to Pride Homes is indicative of the improvement in the residential land market, which we have started to see in the area over the past six months as conditions within the wider housing market continue to pick up.
“A lot of the national and regional housing developers withdrew from the market in this area altogether for a number of years, following the onset of the recession a few years ago, but they are now returning to the market, as the demand for new housing in the area increases and this is finally starting to filter through to an increase in land values.”