Countryside has exchanged contracts on land for its Clay Cross development, located off Market Street with St Lawrence Church overlooking the site.
The mixed-tenure development will comprise 143 open market homes and 18 affordable properties.
St Lawrence Fold will be at the heart of a wider development in Clay Cross.
Glyn Mabey, Managing Director, Partnerships East Midlands, Countryside said: “This is an exciting step in our mission to deliver a range of beautiful, quality new homes for Clay Cross.
“We’ve worked closely with our partners and the council to ensure this new neighbourhood will not only meet the demand for quality housing but also the high expectations of local residents.”