The development of 86 homes for Hull City Council is on the site of the former Milldane flats in Orchard Park. There will be nine one-bedroom and 49 two-bedroom houses and 28 one-bedroom apartments. They are designed by architect Croft Goode.
Building work is expected to finish by the end of 2017.
Wates was awarded the contract via the Orchard Park lead developer framework.
Wates Living Space Homes has already built 316 one- and two-bedroom extra care apartments across three sites on behalf of Hull City Council and social housing landlord Riverside.
Mick Holling, business director of Wates Living Space Homes, said: “Our delivery of the former Milldane site is an acknowledgment of our team’s expertise and the success we have had in striking a balance between creating high quality homes, efficiently, and furthermore doing so whilst keeping the community at the centre of our work.”
The 22-storey Milldane tower block was demolished in 2013.