Persimmon Homes West Wales and Pembrokeshire County Council signed a contract for 21 new homes at Ger y Môr, Saundersfoot.
The properties on Sandy Hill Road will be handed to the council for social rent, with four more reserved for local residents.
The deal was marked onsite with representatives from Persimmon, Cabinet Member for Housing Michelle Bateman, and County Councillor Chris Williams.
All 72 homes on the development will have facilities including a play area and an active travel link to Sandy Hill Road.
The site includes a sustainable drainage system, bio-retention areas, rain gardens, solar panels, electric vehicle charging points, and ecological improvements to protect dormouse habitats and existing greenery.
Three, four and five-bed homes are currently available at Ger y Môr from £310,000, with two-bed homes coming soon.
Stuart Phillips, managing director of Persimmon Homes West Wales, said: “Persimmon is determined to leave a positive community legacy where we build, and an integral element of our offering is the transfer of quality new homes to local housing association partners.
“We are delighted to have exchanged contracts on this initial tranche of houses at our forthcoming Pembrokeshire site, Ger y Môr, and we hope this significant community contribution will help alleviate pressure on the local housing list.
“We are pleased to partner with Pembrokeshire Council to deliver this increase in provision for local people as we make progress to bring this site to fruition.”
Bateman said: “We’re delighted to be going into partnership with Persimmon, taking on 21 new homes here at Ger y Môr, helping deliver secure homes for local people in Pembrokeshire.
“The purchase of these properties as social housing is one of a range of affordable housing options we are offering to support families and individuals with diverse housing needs.
“The purchases at Ger y Môr reflects the Council’s commitment to providing local affordable homes and revitalising our local communities.”
Williams said: “During this development, I have been very grateful to the team at Persimmon, who have been extremely helpful in working with the community and listening to local needs.
“Persimmon are a local developer, and it is hugely positive that they are supporting local people through the local lettings initiative in partnership with Pembrokeshire County Council.
“Through this agreement, 25 properties will be made available to those on the housing waiting list.
“This is an excellent outcome and a very positive step forward in helping residents find suitable homes within their own community.”
