Accord opened its LoCaL Homes  timber-frame factory in Walsall in November 2011.

The association is now forming a construction management team to build the homes with the first site in Wolverhampton set to contain 22 houses.

Accord said the move is expected to “generate significant savings by reducing the cost of using external agencies and contractors, with savings ploughed back into building more new homes.”

Mike Stockle, who has 33 years of experience in the construction industry, will head-up the new division.

Chris Handy, Group Chief Executive of the Accord Group, said: “We are delighted to launch our own construction team which will enable us to erect the timber-framed homes that we are manufacturing in our LoCaL Homes factory.

“The savings we make from doing this will also ensure that we stay ahead of increasing costs and meet the challenge of building higher-quality homes with less Government grant to do so.

“At a time when house-building in the UK has slumped to a 30-year low, it’s vital that we continue to build new homes and this will help us to do that by reducing costs.”

Councillor Peter Bilson, Wolverhampton City Council’s Cabinet Member for Economic Regeneration and Prosperity, said: “We want to see a range of new homes built in Wolverhampton and this exciting development helps achieve that.

“It is fantastic to see a developer such as Accord demonstrating its commitment and investing in our city.”

Stockle, Construction Manager for the Accord Group, said: “This is a ground-breaking step for Accord Group and one that I’m very pleased to be a part of.

“The Bushbury development will be the first of many sites in which homes will be designed, constructed and erected by ourselves and once complete it will provide high-quality, low-carbon homes for local people.”

Accord Group is one of the largest housing associations in the West Midlands and will build 1,500 new homes as part of the Matrix Housing Partnership by 2015.