The project, which also includes a sports hall and community space, is being delivered by Linkcity, Bouygues’ property development company, with Bouygues UK as the main contractor.
The site is currently composed of 14 vacant affordable homes and two vacant community buildings.
In total the development will include 109 homes for sale and 59 affordable homes. 40 of these will be for social rent, and 19 will be intermediate. There will be 76 underground car parking spaces, a three-court sports hall and a community space.
Completion is expected in 2022.
Any additional surplus made from the sale of private homes on site will be reinvested back into more affordable housing and community projects in Westminster.
Linkcity deputy managing director Olivier Soulier said that working with Westminster City Council was “exciting”.
Cllr Rachael Robathan, Westminster City Council cabinet member for finance, property and regeneration, said: "This is the beginning of an exciting new future for Luton Street and part of our overall commitment to deliver 1,850 new affordable homes across Westminster.
"We've worked with our local residents to make sure we deliver the right scheme for the community. We believe that the new sports hall and community space will be a good thing for the local area, alongside the much-needed new affordable homes."