Building work is underway for the first development of North Kesteven District Council owned housing company Lafford Homes.
The site on Steam Court, off Station Road in North Hykeham will see 27 new flats constructed for the private rented market, with tenants expected to move into the new homes in November this year.
The company operates through its own board of directors, using existing building firms to fulfil its projects, and will seek to be an example to landlords, in terms of rental standards across the board.
Philip Roberts, director of Lafford Homes, said: “It is fantastic to see work really get going on providing these much-needed homes in the district.
“Our contractor is on site and the construction is progressing well.
“Through Lafford Homes we aim to bring more housing choice to North Kesteven, with homes in places that people want linked to the facilities they need at a fair price.
“It is an innovative venture designed to stimulate the local housing market.
“We look forward to the completion of this development and to welcoming the first tenants at the end of the year.”