Somerset Place started on site last month to create 15 bungalows and 14 Tyneside flats, all for affordable rent for people aged 55 and over.
Tolent was awarded the £27m contract to deliver the new homes in October last year, and the first two sites are due to complete later this year.
Chris Price, regional director for Tolent, said: “Our teams are well underway with all eight sites now, creating what will be some fantastic new communities in the heart of the city.
“Delivering high quality, much-needed housing is something we’re very experienced in and we know the difference providing such a range of accessible and affordable housing will bring to those living in these areas.”
This latest housing contract follows the council's success with a new innovative housing delivery model, the Annuity Lease Back Model (ALBM).
ALBM, believed to be the first of its kind for social housing, involves council-owned land being leased to a development partner, for new houses to be financed, designed and built to agreed standards. When construction is completed, properties are leased back to the council for an agreed period of time and, at the end of that window, the authority owns all of the homes.
Councillor Linda Hobson, Cabinet Member for Housing at Newcastle City Council, said: “It’s fantastic to see work start on the final development in a programme of house building that brings 347 new council homes to our city. We are always looking for new and innovative ways of delivering new homes and the ALBM model has been a great success.
“As a council we are committed to providing a range of housing options to meet the diverse needs of all our residents and working in partnership with developers, such as Tolent, is one of the ways we are able to do this. I can’t wait to see these homes finished and residents moving in.”
In October 2017, the council launched ALBM 1 which saw Tolent deliver 148 accessible and assisted living bungalows, apartments and Tyneside flats across five sites, for those aged 55 and over, or for those with early onset dementia and specialist housing needs.
The homes have been built to high design standards and are amongst the top 25% performing homes in the UK.
The properties will all be let at affordable rents and managed by Your Homes Newcastle, who will also provide enhanced housing management and support services to help residents live independently and safely in their new homes.
Including work completed in 2020 and secured work into 2023, Tolent is set to deliver around 3,000 new homes covering both the private and public sector across the North East and Yorkshire.