The agreement is the first major deal since the modular specialist decided to reopen its Yorkshire factory following lockdown.
Selby is also the first scheme where Legal & General will deliver a full development proposition from buying land, developing the product, achieving planning consent through to delivery.
Operatives returned to the factory last week after production processes were realigned production with additional measures to accommodate strict social distancing.
Design and digital engineering specialists there have been able to work remotely throughout the lockdown period and 75 employees have now returned to the factory as part of the gradual phasing back of its 250 staff.
Rosie Toogood, CEO of Legal & General Modular Homes said: “Using modular construction, Legal & General will be able to deliver high quality homes at a much faster rate than through traditional construction.
“In a post Covid-19 crisis environment, the speed of delivery will be more important than ever before.
“This scheme, along with our proposals at Bonnington Walk in Bristol, will showcase the benefits of modular construction.
“Achieving planning permission for this Selby scheme is a fantastic milestone for the business, and a major achievement for the team, particularly set against the current backdrop.”