Construction work has started on a £1.7 million development on Blagg Avenue in Nantwich.

The scheme, by housing provider Wulvern, aims to provide more affordable homes in the historic town where house prices are higher than many areas in Cheshire.

Wulvern has appointed local contractors Lothlorian to transform the former Millfields pub site.

The development includes 12 two-bedroom homes and two one-bedroom apartments, with contained gardens and parking.

Wulvern was awarded a grant of £308,000 through the Homes and Communities Agency’s Affordable Homes Guarantee Programme.

They aim to complete  the new properties for rent by December 2014.

Wulvern development manager Nick Powell said: “The new homes will go a long way towards meeting the demand for affordable housing in Nantwich.”

The organisation manages more than 5,200 homes in Crewe, Nantwich and surrounding villages.

It is also converting two other former pub sites in Crewe, building 20 apartments on the former Rockwood pub and 14 two-bedroom houses on the grounds of the former Royal Scott public house.

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