Demolition work has started on a South Cambridgeshire District Council-owned site in Gamlingay to make way for 14 new homes.
The scheme in Robinson Court will see 32 bedsits make way for new, energy efficient properties.
The new properties will help address the shortage of affordable housing in Gamlingay, by providing a number of one and two bed flats for affordable rent, and several one and two bedroom houses for shared ownership.
The remaining four homes on the site will be sold on the open market to private buyers.
The new buildings will also enable people moving into them to claim free daytime electricity, as solar panels are being placed on the roof of each property.
The existing site is made up of buildings that were constructed in 1973 and are owned and managed by the council.
However due to their layouts they have been difficult to rent out, which led to the council seeking and achieving planning permission for the regeneration of the site.
Contractors Taylor French have now begun work to remove the existing properties from the court.
The new homes are expected to be completed by October 2018.
Councillor Lynda Harford, the council’s Cabinet Member for Housing, said: “It is fantastic news that work has started in Gamlingay.
“It’s been a long road to get to this point but I’m convinced that this scheme will make a big difference to the affordable housing offer in Gamlingay.
“We know that the price of housing is a big issue for residents of South Cambridgeshire, and the shared ownership properties in particular will help those who are trying their hardest to get on the housing ladder.”
Gamlingay Cllr Bridget Smith said: “Robinson Court had reached the end of its life, and so it’s extremely pleasing that the council has decided to redevelop the site itself. The majority of these new homes will be either affordable rented or shared ownership, specifically for local people.”