The £39m contract, which is the first to be signed in the Midlands, is part of the HCA’s Affordable Homes Programme, which is set to deliver 80,000 new affordable homes across England by 2015.

Waterloo’s new housing programme will see home built in Lincolnshire, Warwickshire, Leicestershire and Rutland, Nottingham and Derbyshire and Staffordshire.

In the past few weeks more than £75m worth of affordable housing deals have been signed with the HCA, in the first wave of deals worth £1.8bn planned to be signed with 150 housing associations, local authorities, house builders and other providers.

Under deals signed last week, London and south east housing association Town & Country will get £22m in funding to build 1,280 homes.

Around two thirds of the Town & Country allocation will be developed in Tunbridge Wells and Tonbridge & Malling council areas.

Orwell Housing Association will get £14m worth of funding and will deliver 710 homes, all of which will be in the east and south east.

The other two contracts signed with the HCA, will be delivered from the landlords’ own resources as well as income generated from their ability to charge up to 80% of market rents.

Of these ‘nil grant’ deals, Westfield Housing Association plans to build 20 affordable rent homes in the north west, while Worthing Homes will build 96 affordable rent homes, all in the east and south east.