The regeneration scheme will create four one-bedroom flats; eight two-bedroom houses, 10 three-bedroom houses and three four-bedroom houses.
All the properties will be for affordable rent. The scheme includes 46 parking spaces as well as changes to the road layout to create a cul-de-sac style development.
Councillor Marilyn Curran, Mid Suffolk District Council’s Portfolio Holder for Housing, said: “We are committed to providing good quality, affordable homes for our residents.
“This project will see outdated and not-fit-for-purpose housing being replaced by modern, sustainable homes that will enable families and residents to stay in an area of Mid Suffolk in which they have chosen to live.”
Lovell regional director Tony Tann said: “These developments will make a real difference by delivering a range of warm and modern, well-designed affordable homes for rent for local people.
“Our team is delighted that demolition is now under way and we look forward to working closely with the local community and Orbit Homes throughout the construction programme.”
Demolition work is also in progress at St Mary’s Road, Stowmarket, where four Unity houses and 34 garages will be replaced with 14 brand-new homes for affordable rent: two one-bedroom flats, 10 two-, three- and four-bedroom houses and two two-bedroom bungalows. The new housing will be managed by Orbit East.