Construction began on 62 new ‘zero-carbon’ homes in Brookfield Close.
These will replace apartments, bedsits, and temporary accommodation with a variety of flats and houses, all of which the council said will meet national space standards.
The development will also promote an eco-friendly lifestyle with solar panels, ground source heat pumps, and sustainable drainage systems.
Green spaces, play areas, and allotments will also be included.
Regional employment and training opportunities have been created through partnerships with contractors, the council said.
The development is located near Shenfield station.
Councillor Dr Tim Barrett, chair of the housing, health and community committee, said: “Our ambitions are to build modern, safe, healthy and green standard homes, delivering the council homes that our communities urgently need.
“We are investing to positively transform lives for the better for generations to come and it’s great to have the support of Homes England’s Affordable Housing Programme to help us deliver these homes.”
Construction began this month and is expected to be completed within two years.