Penrith-based Genesis Homes (North) Limited will build 74 luxury homes at St Cuthberts on the eastern fringe of the town.
The first phase is underway and reservations are now being taken, with five plots already reserved.
This phase comprises 28 houses and bungalows with a mix of between two- and four-bedroom units.
Simon Whitwham, the general manager of the commercial arm of the Cumberland, said: “We are excited to form this partnership with Genesis Homes.
- L&G launches two exclusive new build products with Skipton
- Building society launches exclusive product through BuildLoan
- Leeds Building Society improves new-build criteria
“The opportunity to work with a local housebuilder with plans to construct a large number of high-quality homes in north Cumbria was particularly enticing.”
Genesis Homes plans to develop more sites in Cumbria ranging in size from 25-150 homes.
Nicky Gordon, managing director of Genesis Homes, said: “We’re obviously delighted to have partnered with the Cumberland.
“As a local business ourselves, we much prefer to work with other local firms.
“We became aware that the Cumberland may be able to help us finance early in the project, and their knowledge and expertise became clear immediately.
“Also, the fact that they were on our doorstep and we could sit down with them and talk about the development face to face was key in our decision to work with them.”