Energy and regeneration specialist, ENGIE, will build a mixture of 40, 2-bedroom and 4-bedroom council houses across three sites on Hobgate Road and one site on Tithe Croft, off Chervil Rise.
They will be the first phase of a total of more than 200 new homes to be built for rent and sale on the estate over the coming years, with the council set to develop nine sites in total and WV Living putting in place plans to build on a further five sites.
ENGIE are expected to start on site in the coming months.
It follows an extensive demolition programme of vacant buildings and is part of an ongoing £120 million transformation of the estate which has also seen existing residential blocks undergo major improvements by Wolverhampton Homes, and the creation of three new play areas and a football pitch.
All of the new homes will also have their own car parking space provided.
Councillor Jacqueline Sweetman, Cabinet Member for City Assets and Housing, said: “We have made significant headway with works on the Heath Town estate and real change is happening.
“The appointment of ENGIE is a major milestone in this project and will now kick start the new building programme. We can look forward to seeing the first bricks laid for the council homes later this year.
"The majority of the new homes will come with gardens and all will have access to their own parking - Heath Town will soon look like a very different place.
“This is a major development programme and it will make a huge difference to the quality of life and housing choice for our residents.”
Mick Mills, Regional Managing Director at ENGIE, said: “We’re really proud to have been chosen to develop these new homes, which will make a huge difference to the area.
“ENGIE has a strong track record of working with our partners to transform communities and create places that people are proud to call home, so it’s great that we can use that expertise to benefit residents right here in Heath Town. We’re really looking forward to starting on site and working closely with the local community.”
Other completed works include the demolition of walkways and garages in the Hobgate Road area of the estate, the disconnection and rerouting of the district heating pipework, and the refurbishment of the ground and lower ground floors of Ling House to provide new office, meeting and activity space for the Hope Family Centre.