Sovereign Housing Association and Basingstoke and Deane Borough Council have combined their land in order to build 12 new homes at the site in May Street.
In June, the council agreed to transfer their land surrounding the garages at the corner of Lower Brook Street and May Street to Sovereign.
Demolition work has started and representatives from Sovereign and the borough council attended site to meet development contractor, E G Carter & Co Ltd, and see the transformation get underway.
Luke Bingham, Divisional Director, Sovereign said: “We’re really pleased to be working with Basingstoke and Deane Borough Council on this exciting development in the centre of the town. Only by working together has this development been possible.
“I’m looking forward to seeing the transformation take place and welcoming residents into their new homes next year.”