The £6.5 million scheme marks the next phase of the Nar Ouse Regeneration Area (NORA) project, which involves regenerating brownfield land to the south of the town centre.
The programme has already delivered more than 100 homes on the Nar Valley Park site.
Designed by Hamson Barron Smith, the 50 new houses will be built on land off Wisbech Road and are scheduled for completion in early 2019.
Cllr Alistair Beales said: "The NORA site has been a major regeneration project for us, bringing a large brownfield site back into use. It now boasts a new school, innovation centre, play area, public park and community facilities. All of the 112 homes we have already built on the site are either sold or sale agreed, such is the demand for housing in the area. This latest phase will make a further 50 properties available.
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"The innovative partnership that we have with Lovell, is already proving successful on our other major development site in North Lynn. None of the North Lynn housing has been released for sale yet but we have over 100 people who have registered their interest in the properties, which is very encouraging indeed."
Lovell is already working with the Borough Council of King's Lynn & West Norfolk on a separate housing programme which is set to deliver up to 600 new homes in King's Lynn by 2020.
Regional managing director Simon Medler said: "We are excited to be continuing our strong partnership with the Borough Council of King's Lynn & West Norfolk through the company's appointment to the next phase of the highly successful NORA programme. This is an important scheme which has brought new life to brownfield land and is answering the urgent demand for high-quality, modern and energy-efficient new homes locally."
(LM/MH)
