The properties – of which around 350 will be for sale - will be in the Fir Vale, Manor, Norfolk Park, Parson Cross and Shirecliffe areas of the city.
Designs are expected to be unveiled at a series of public consultation events over the summer and building could begin by spring next year, with all sites under construction before the end of 2015.
A £1.6 million loan from Sheffield City Council has enabled the design process to begin with immediate effect, allowing development to be brought forward sooner than originally planned. The loan comes from the New Homes Bonus that the government gives to local authorities to encourage the development of new homes.
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Construction of 142 homes at Brearley Forge - named after the inventor of Stainless Steel, Harry Brearley – 116 at Cutler’s View, Norfolk Park and 47 on smaller infill sites in Shirecliffe is already well underway and 31 buyers have already moved in.
Councillor Harry Harpham, Sheffield City Council's Cabinet Member for Homes and Neighbourhoods, said: "I am delighted that we were able to provide this loan which kick starts work on the next phase of this exciting, housing led regeneration of large areas of the city.
"The urgent need for high quality family housing here is evident from the huge interest there has been in the first phase of Sheffield Housing Company developments."
Phase two homes will be designed to not only meet the needs of the local community but to also attract purchasers from further afield by providing high quality family accommodation - some of which will be even larger than the new homes constructed to date.
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