A developer has started work on 130 new homes in Lutterworth.
The Whittle Fields development at Leaders Farm in Coventry Road will also include a new cemetery for the town, with developer Bellway agreeing to supply 1.2ha of land off Brookfield Way.
Money towards public transport, bus passes, education and library services has also been put forward by the firm.
Homes at Whittle Fields will range from one-bedroom apartments to five-bedroom houses. There will be 39 affordable rented and shared ownership homes.
Sales Director for Bellway East Midlands, Ben Smith, said: “We are thrilled to have started work at Whittle Fields. We know there is a need for new homes in Lutterworth and we were eager to start construction as soon as all the paperwork was in place.”
As well as providing a new cemetery, Bellway has committed to contributing £16,500 towards bus stop improvements, £17,800 for education and more than £8,000 for library services.
The developer will also pay £86,000 to the county council to fund bus passes.