Barnsley Council will provide the land at Aldham House Lane in Wombwell, Barnsley, to enable the development of 25 two and three-bedroomed houses, as part of a consortium led by South Yorkshire Housing Association.
The project falls under the Sheffield City Region “Build to Rent” scheme, which is itself part of a national initiative.
The cabinet spokesman for corporate services on Barnsley Council, Coun Alan Gardiner, said: “This was a vacant site that we’re bringing back into use, helping to grow the economy by creating new jobs and housing for local people.
“We’re pleased with the £7.3m funding that the scheme has attracted from the Homes and Communities Agency.
“We’re very happy to support this, and the match funding from South Yorkshire Housing Association, by providing the land as our contribution.”
A spokesman for Barnsley Council said that Barnsley, Rotherham and Sheffield councils will receive 18 per cent of the profit after costs when the development is sold on.
He added: “Barnsley’s equity share will be just over four per cent, or around £54,000. The project will bring much-needed inward investment of some £2.3m in the borough, as well as creating additional housing in Wombwell.
“Local labour and suppliers will be used in the site’s development.
“This scheme was one of the first 45 projects announced under the Build to Rent project in April this year, which will see the construction of up to 10,000 new private rented homes.”
The national Build to Rent scheme was introduced by the Homes and Communities Agency in a bid to stimulate the supply of new private rented accommodation.
Nationally, the first scheme to get off the ground was in Southampton, back in July.