80 apartments on Bedford Road, delivered by Lindum Group and funded in partnership with Cheyne Capital.
The new homes are contracted for completion by September 2016.
The site is located in High Town, a regeneration area and was formerly the site of a disused Drill Hall, which was demolished in 2013. Luton Borough Council has full nomination rights over the units and will manage and maintain the properties on an ongoing basis. The accommodation will be offered at below market rents.