Work has started on a £25m “transformation” of the former Cattle Market in Bridgwater, Sedgemoor District Council has said.
The new development will bring 159 homes to the formerly derelict site.
The new neighbourhood, named The Parade, is being created by Keepmoat Homes in partnership with the council.
A spokesperson for the Doncaster-based homebuilder said the Parade will offer 135 homes for open market sale and 24 for shared ownership, and will also feature landscaped areas and a children’s playground.
Ben Cook, regional managing director for Keepmoat Homes in the South West, said: “We are excited to have now started work at The Parade, where we will be building much needed new high quality homes.
“Keepmoat offers something different to other traditional homebuilders as we build over 80% of our developments on brownfield sites and specialise in helping people get on the property ladder.
“In fact 72% of our homes are sold to first-time buyers. This is particularly important in the South West where affordability is a real issue.”
Mr Cook said the development would also bring benefits to the wider community, with the company employing local people and contractors wherever possible.
Councillor Duncan McGinty, leader of Sedgemoor District Council, added: “It has taken a long time to get to this stage, with much hard work from many people and organisations.
“We are delighted that work has finally started on The Parade which will bring more much-needed homes to Bridgwater.”