The work will see more than 50 new homes being built using a modern method of construction.
Housing provider Longhurst Group is delivering the development on a site on California Road which was once part of the Regional College's Huntingdon campus.
In a first for the Group, a modern method of construction is being used which involves timber-framed panels being manufactured in factory conditions before being transported to the site and craned into place.
The panels, built using sustainably-sourced timber, are being delivered to site as complete wall panels with insulation and external cladding.
Marcus Keys, Longhurst Group's Executive Director of Growth and Development, said: "We're pleased to see work beginning on these 56 new homes in Huntingdon.
"By using this modern method of construction, we’re able to assess an innovative new method of building which we’re keen to explore further, as well as reducing both the carbon footprint during the construction process and longer-term life cycle of the home itself.
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"It'll also help to ensure the highest levels of quality assurance before the panels are even on site.
"This development will complete the regeneration of a brownfield site and will help to meet the need for affordable housing in the area.
"As a Group, we're committed to providing the homes people want, where they’re needed most and by delivering California Road, we'll be doing just that.
"I'm excited to see the development progress and I'm certain that once completed, its contemporary style will look completely different from many affordable schemes seen up and down the country."
The development will be made up of one, two and three-bedroom homes available for Shared Ownership, Rent to Buy and social rent, with both car and cycle parking provision also being included.
The panels are being made by LoCaL Homes in Walsall.
Burmor Construction is the contractor working on this development and its Director, Patrick Burke, said: "We're delighted to be working with Longhurst Group on this innovative project to deliver affordable homes in Huntingdon.
"We've been building our experience with the LoCaL Homes MMC product over the last few years, and Longhurst Group made clear to us from an early stage on this project that they wanted to promote innovation and forward-thinking.
"The result is going to be efficient, air-tight homes made to factory standards of consistent quality, completed and ready for occupation sooner than they would be using traditional building methods."
