Housebuilder Places for People has started work on 131 new homes on cleared sites in the Infirmary Waterside area of Blackburn
The new homes on Mosley Street and Abraham Street will be a mix of one to four bedroom houses and two bedroom bungalows, and some will be adapted for people with disabilities. They will be available for sale, rent and shared ownership.
The new stock is being delivered through Elevate, the East Lancashire Housing Market Renewal Programme, and national regeneration agency English Partnerships.
Phillip Helm, development director for the North West at Places for People, said: "These plans represent a golden opportunity to redevelop the Infirmary Waterside area and will help to create a viable and sustainable neighbourhood with a mix of homes, including a proportion of affordable homes for local people, as well as new business opportunities and improved green open spaces."