Able Construction (Northern) Ltd has been appointed to build the scheme which is currently on track for completion by the end of February next year.
The Gateshead-headquartered construction firm has partnered with Four Housing for over 15 years and recently completed a development at Mary’s Place in Millway, Gateshead.
The contract will provide work experience opportunities for a number of young people, will safeguard a number of apprenticeships and will also provide health and safety training and vocational qualifications for a number of employees.
Philippa Hughes, head of business development at Four Housing, said: “We are pleased that work is underway on the new family homes on the Sherburn Road Estate.
“The scheme represents a significant investment to the area that has been part funded by the Homes and Communities Agency.
“Not only will the development provide high quality, affordable housing options for families in an area where there is high demand, it will reinvigorate an area of the community which has been derelict for some time.”
The Homes and Communities Agency (HCA) has contributed £400,000 worth of funding to the scheme.