Work to build 106 affordable homes in Cambridgeshire has started.
The properties, which will be located in March and Chatteris, will be available for rent or shared-ownership, and private sale.
The project is led by Smartlife, a construction training centre, which aims to show how modern building methods can solve housing shortages.
Building work on the terraced, detached and semi-detached homes is expected to be completed in 2007.
The development is funded by English Partnerships, the Housing Corporation and the Department for Local Government and the Communities.
Cambridgeshire County Councillor, John Reynolds, said: "Smartlife continues to provide practical solutions to the key blockages to sustainable growth."