Work has begun on a new £2.7m project to provide 22 new homes on a prominent site in Hartlepool.
Karbon is working with local contractor Gus Robinson Developments on the scheme which will see 15 three-bedroom rented homes and seven four-bedroom homes made available through Rent to Buy.
The new development has been designed by NORR architects and will be the first time Karbon Homes has delivered new affordable homes in Hartlepool.
The site on Brierton Lane in the town sits in the midst of an established, high quality residential area, which should make it popular with local families.
The new development is part of Karbon's ambitious development programme across the north which will see the completion of 2,400 homes over the next four years.
Having only been formed in April last year, Karbon Homes has already completed well over 200 homes and has started on a further 600 regionwide.
The project in Hartlepool is being delivered with Homes England (formerly the Homes and Communities Agency) contributing funding of over £650,000.
Zoey Hawthorne, Assistant Director of Development Delivery at Karbon Homes, said: "This is our first new build development in Hartlepool and demonstrates our ambitions to establish a truly regionwide reputation for providing high quality affordable homes.
"We know there is significant demand for this type of property in this area, to allow working families to benefit from a high standard of accommodation and to plan ahead for getting on the housing ladder and eventually owning the home themselves."
Karbon is being assisted in delivering the new homes by Portland Consulting Engineers and consultants Elliott Associates.
Steve Bell, managing director of Gus Robinson Developments, the main contractor building the new homes, said: "This is a particularly exciting project for us as we are using our full range of services to deliver the scheme. Having first identified the potential development site, we set about negotiating the land purchase while working up design proposals.
"We're working in partnership with Karbon Homes on a number of projects across the North East, and being a Hartlepool based company, we're particularly proud to be working with Karbon on their first project in the town."