Construction firm Seddon has started work for Guinness Northern Counties on an £800,000 project to deliver eight homes at Brandy House Brow in Blackburn.
The 33-week programme includes the construction of six houses and two bungalows, one of which will be specially adapted for disabled access, and external works.
The buildings will use rainwater harvesting and high insulation to achieve level 3 Code for Sustainable Homes.
Allan Ramsay, director of investment and regeneration at Guinness Northern Counties, said: "This work is the final phase of a three-phase construction project at Brandy House Brow. Guinness Northern Counties is committed to regeneration in the area and is delighted to see this work getting underway."
Jonathan Seddon, managing director of Seddon, added: "This is a great project to be working on as it incorporates quality design and specialist building materials to ensure the new homes will not only be aesthetically very pleasing but also highly sustainable and energy efficient."