The addition of 779 new homes across two sites in Manchester and Salford will add to the government’s target of building 10,000 new homes for private rent under the £1bn scheme.
Property developer Renaker will carry out the work, which has received £55m to build the new homes.
Each site will include a mix of one, two and three-bedroom properties and the work is expected to be completed by the middle of next year.
Lewis (pictured) said: “Millions of people use the flexible option of renting so I’m determined to create a bigger, better private rental market offering greater choice for tenants.
“This extra money will not only create 800 more homes for the people of Manchester and Salford, it will also create jobs and security for hardworking people – a vital part of our long term economic plan to secure a better future for Britain.”