The site, on Jews Lane, has undergone significant enabling works over recent weeks but now the construction of the new buildings has begun.
It will comprise of two new buildings, one which will house student accommodation and the other offering 5,000 sq ft of flexible open plan employment space.
The student accommodation building will feature 63 flats, including a two-bedroom studio and a dedicated reception area. It will cater for the growing student population in Bath, particularly the significant number of international students attending both universities in the city.
Planning permission was granted for the development in September 2019 and it is set to be completed in Summer 2022.
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The open plan employment space will be totally flexible, with the ability to be sub-divided to cater for a number of potential uses.
Ross Chester, Development Manager for Deeley Freed Estates, said: "We are pleased to be able to progress this development after a challenging few months and look forward to delivering the high quality student accommodation and fully flexible workspace.
"The enabling contract has been completed successfully, including working closely with Network Rail to ensure works around their embankment have been delivered safely.
"We are now looking forward to working with Deeley Construction to ensure the development is ready for the student intake in Autumn 2022."
Martin Gallagher, Managing Director of Deeley Construction, added: "We're pleased to be working again with our long-standing partners Deeley Freed Developments Ltd on this project and to extend our rich working history with the company.
"This is a mixed development comprising residential and commercial space and we have been involved at an early stage to advise on fulfilling pre-commencement planning conditions.
"As a trusted and respected Midlands developer, we are pleased to be expanding our footprint in Bath and our on-site team will ensure there is as little disruption as possible to the surrounding community for the duration of the project.
"A key objective for the project is to provide new jobs for local people and work experience for students, so are working closely with the local authority and Bath College to deliver these targets.
"It is a challenging site and we have been working closely with the client to reach a position where new-build construction can start on site. It’s fantastic to see work now underway."
