Progress Housing and Breck Homes have teamed up to deliver 55 affordable homes on a 3.5-acre site in Catterall.
The £8.5m plans were approved by Wyre Council late last year and have been supported by funding from the government agency Homes England.
Andy Garnett, founder of Blackpoo-based housebuilder Breck, said: "We have made a flying start to the work in a safe and controlled manner.
"It is the start of big things in our housing division; we already have a significant number of projects in the pipeline. It is a privilege to be working with the Progress Team again on our very first affordable housing scheme."
Daniel Griffiths, operations director for Progress Housing Group, said: "Once completed in early 2022, the development will provide much-needed and high-quality affordable homes for a range of families, along with opportunities to get onto the housing ladder."
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