The homes are part of the wider Handley Chase Sustainable Urban Extension development off London Road in the town and will be delivered by the housing association, Longhurst Group.
The group, which owns and manages more than 23,500 homes across the Midlands and East of England and has offices in Boston, Lincoln and Grimsby, is working with Lincoln-based Lindum Group on the development.
In total, 64 affordable homes will be built.
Marcus Keys, Longhurst Group’s Executive Director of Growth and Development, said: “We’re delighted to be bringing more much needed affordable housing to North Kesteven and it’s great to see work underway on site.
“As a group, we’re committed to providing the homes people want, where they’re needed the most and we’re very pleased to be working with our partners at Lindum Group to respond to the local need in this area.
“As a fully affordable scheme, this development will give local families and residents the opportunity to get onto the property ladder and have a home they can call their own.
“I’m very much looking forward to seeing work progress on this site and I’m excited to see our plans become a reality.”
Thirty of the homes on the development are to be offered for sale on a shared ownership basis, with the remaining 34 available for affordable rent. It will include a mix of two, three and four bedroom properties.
In addition, two public open spaces with new trees will be created as well as a new pedestrian link through to Rosewood Drive in the Southfields estate.
The development site forms part of the ongoing Handley Chase development, which was approved in July 2015. The wider scheme involves creating a Sustainable Urban Extension (SUE) to Sleaford including 1,450 houses, a new school, playing fields, allotments and commercial space.
Lindum Group Contracts Manager Gavin Parker said: “We’re really pleased to be on site at Handley Chase. Lindum Group has been working to bring forward this development for almost two years and so it’s great to be marking the start of construction work.
“The first stage of the scheme is groundworks, which will involve stripping the top soil, excavating the attenuation pond and setting out the new estate road. We intend to reuse the majority of the soil on site at a later date.
“This week, (October 18), we’re excavating the first foundations and we should be installing the first timber frames during early December.
“We plan to hand over the homes in three phases, with the first properties completed by the end of next summer and the last finished by the end of the year.
“Once complete, these homes will be a welcome addition to the housing stock in North Kesteven and will be central to the new community that’s being created as part of the town’s Sustainable Urban Development.”
Leader of North Kesteven District Council, Coun Richard Wright, added: “It’s fantastic to see work now underway on these new homes, which form part of the existing Handley Chase development in the town and support the wider Sustainable Urban Extension to Sleaford.
“With 30 of them for sale as shared ownership and 34 of them for affordable rent, this scheme will help ensure that the high quality homes people need are readily available and our communities can continue to flourish as a result.”
The SUE forms part of a strategic plan for extra housing and employment land development across the district to address growing demand.