Work to build 165 affordable family homes at Derker Street, Oldham, is underway.
Keepmoat were selected by Oldham Council to resume stalled regeneration plans. Homes and businesses on the site were cleared eight years ago to make way for new properties. However, the curtailment of Housing Market Renewal funding in March 2011 put the regeneration plans on hold.
Keepmoat has now begun work on a mix of two, three and four bedroom properties, for open market sale and affordable rent, plus improvements at Afghan Park, after the council's planning committee approved the company's proposals in September 2012.
David Wroe, new-build managing director at Keepmoat, said: "This scheme has been a long time coming, and we're excited to finally get work underway. The investment will create the modern, affordable housing that Derker so desperately needs.
"The site has been vacant for some time, and we know it will be a relief to many local people to finally see it achieve its potential. We'll be building a mix of social homes to rent, and properties to buy, aimed at everyone from first-time buyers to growing families."
Oldham Council recently unveiled the first new homes in West Oldham that have been built as part of the £113m Gateways to Oldham PFI contract.
Cllr Dave Hibbert, cabinet member for housing, transport and planning, said: "Coupled with the arrival of Metrolink this is a massive boost for Derker and will help in its regeneration. It will also bring about employment opportunities in the construction industry for apprentices and help stimulate business for local contractors and suppliers."
The scheme will see Keepmoat build 123 of homes for private sale, and 42 rental properties to be owned by social landlord Guinness Northern Counties.
Ian Kershaw, business development manager at Guinness Northern Counties, said: "This is really great news for the local area, especially at a time when affordable housing is in such high demand and short supply.
"We are grateful for the support of Oldham Council and the Homes and Communities Agency in helping us to provide these much needed new homes for local people."