Building of 97 homes on the site of the former Tullis Russell works in Glenrothes will get underway in the New Year.
Dunfermline housebuilder Campion Homes plans a mix of two, three, four and five-bedroom houses at the former paper mill.
As many as 850 new homes will be built on the vast site over the next decade.
The housing scheme is part of a broader £42 million redevelopment.
The iconic paper mill closed in 2015 after the collapse of Tullis Russell after more than 200 years.
Building work on the first new houses at the former Tullis Russell site, being carried out by Campion on behalf of Kingdom Housing Association, started earlier this year.
Campion Homes hopes the first residents will move in to its new 97-home development by autumn 2022.
Revenue increase for Campion Homes
The Dunfermline firm has reported a £14.1m increase in revenue for the year to June 30 2021.
Revenue rose to £41.8m from £27.6m in 2020.
Pre-tax profits also rose to £2.9m over the reporting period from £552,552 the year previous.
The company saw sales rates at its private developments rise to levels above those experienced pre-pandemic.
This has meant strong forward sales coming into the next financial year, which has put pressure on land price and availability.
Executive chairman Pete Bell welcomed “excellent” sales rates at the firm’s sites.
Mr Bell said the firm had navigated “very difficult working environment” of the past 12 months.
He said: “The company recognises the exceptional response that its employees and subcontractors have given again this year.
“The Covid-19 issues have remained, combined with the significant increase in demand for new housing.
“Campion has demonstrated that its people, relationships and the quality of its product are integral to the success of the business.”
During the latter part of the year, the firm also had to deal with significant material and labour price inflation.
These challenges remain and are putting pressure on fixed price contracts margins.
It is also making recruitment more difficult for the Dunfermline firm.
Price increases having ‘significant’ impact
Forecasts for the current year anticipate margins to be further hit.
The executive chairman said the price increases were putting “significant pressure” on the business.
Mr Bell added: “Lack of material availability is also causing considerable scheduling difficulties. However, our pipeline of work is strong.
“We will carry on working with our partners to deliver the high quality, energy efficient homes that homeowners and tenants seek.“
