The first stream of 91 new council houses has been submitted to the planning department.
And most of them will be bigger houses to accommodate larger families.
Half of them will have three bedrooms, while 18 will be four bedroom homes. Two of the new homes will boast five bedrooms.
Labour’s Cabinet member for housing and regeneration, Councillor Nigel Long, said: "We are building bigger homes because we have many large families in temporary accommodation and we need to meet their needs.”
Some 21 of the new homes will be in Bletchley and 57 in the central area of Milton Keynes.
The Labour administration plans to build 500 new council homes in all in its bid to ease the housing crisis.
Council leader Pete Marland said: “I am proud that we are starting the process of building 500 new council houses. We want to create a new city where all households have secure homes free from the threat of homelessness.”