Story Homes has started on site with the development of 71 family homes in Galgate, Lancaster, which will deliver a mix of two-bedroom apartments and two, three and four bedroom semi-detached and detached houses.
Up to 40% will be affordable and designated for local people.
The initial work will be to erect fences, a compound for offices, plant and material and site access points, as well as preparing the ground for sewers.
Once complete, the site will also include a public open space and play area.
Plans to build on the site were approved by Lancaster City Council in June subject to a legal agreement which was completed last month.
Story Homes currently has ongoing projects in Lancaster and Kirkham, with others in Clitheroe, Preston and Cottam in the pipeline. It is also looking at potential developments in Manchester and Cheshire.
The company plans to employ a further 43 full time staff over the next 12 months as part of a three-year strategic recruitment plan which will eventually see well over 100 jobs created, with additional work for sub-contractors and key trades.
David Hayward, development planner for Story Homes, said: “Story Homes already has a proven track record for delivering successful communities, including High Wood, the new build element of the Lancaster Moor Hospital project, which received a national industry award last year.
“We are looking forward to working in Galgate and bringing more of our high-quality homes to the Lancaster area in the very near future.”