Work has begun on a £15 million scheme to build 119 homes on the site of a former factory.

The project is the first phase of the redevelopment of the former British United Shoe Machinery (BUSM) works, in Ross Walk, Belgrave, Leicester.

A total of 1,200 homes will eventually be built on the 30-acre site.

The initial 119 properties are being constructed by Westleigh Developments, of Whetstone, in partnership with Leicester Housing Association and Nottingham Community Housing Association.

About half of them will be low cost as Leicester City Council needs to provide more of that type of accommodation.

Six children's play areas plus shops, cafes, commercial units and a nursery will also be built on the site.

Abdul Osman, the city council's cabinet member for regeneration, said the project would help reduce the number of people on waiting lists for low-cost housing.

He added: "I'm delighted that this former industrial site is being brought back into valuable use to create new housing, including a mix of much-needed affordable housing.

"It is great to see the work is underway on what will become a prestigious development near the heart of the city's Belgrave community."

He said the scheme showed what could be achieved with the help of the Government funding "to enable development of housing sites such as this during a recession".

The low-cost homes are being paid for by grants from the Homes and Communities Agency – a national organisation which aims to create low-cost homes – the housing associations and New Growth Point cash provided by the Government via Leicester City Council.

Most of the 119 homes will be either one or two-bedroom apartments, with two, four and six-bedroom houses also being built.

Westleigh said it hoped the first homes at Ross Walk will be ready by late autumn this year.

Managing director Chris Beighton said: "The redevelopment at Ross Walk is a significant one for the city and will transform what was formally a large industrial site into a thriving community.

"We are pleased to announce that construction work has begun."

William Cornall, director of development and regeneration at Leicester Housing Association, said: "This development will provide us with 60 homes for affordable rent, including 33 large family homes, in an area of high demand.

"It has been a number of years since we have had the opportunity to build large family housing required to meet the demands of the local community."