Cross Keys Homes is spending £3 million to convert the former Buckles Solicitors building in Priestgate into 29 affordable homes.
Building work on the derelict 18th century property, part of which is Grade Two Listed, is underway and Cross Keys bosses say that there is already strong interest in the development.
The project is expected to be completed early next year and will see two new apartment blocks built, as well as a partial demolition and revamp of the current building.
Plans for the development went on display at Peterborough Museum on Monday and Cross Keys chiefs say they have had a positive response.
Hayley Roan, sales and marketing manager at Cross Keys Homes, said: “This is a very exciting opportunity for people to acquire a city centre home that will be affordable for many pockets.
“There is a real shortage in Peterborough, as well as nationally, of quality homes that the average person can afford.
“The response we have had from the public at the event and generally has been really positive so far.
“The building has been empty for around six years now and I think many people are pleased to see that it is being turned into new homes.
“We already have a list of around 60 people who specifically expressed an interest in a new home in the city centre.
“It’s early days yet, but we expect further strong interest.”
Matthew Flower, managing director of building firm Lindum Sturgeon, which is carrying out the work, said: “The investment will help to secure jobs for local workers and enable us to expand on our apprentice and work experience initiatives, providing opportunities for the local community.”
Councillor Nazim Khan, who represents Central Ward, said: “This is a good idea, the building has been empty for a long time and the city’s housing waiting list is well documented.
“Everyone wants to see the city centre thriving, however it is also important to attract new shops as well.”
John Bridge, chief executive of Peterborough Chamber of Commerce, said: “Any housing scheme that makes it easier for people to get on to the property ladder is very welcome.”
Factfile: Scheme aimed at attracting first time buyers
The development will see the partial demolition and extension to 49-53 Priestgate to create 11 self-contained apartments. Two new apartment blocks containing 16 self-contained apartments will also be built.
A partial demolition and conversion of 55 Priestgate will also create two apartments.
The shared ownership scheme allows buyers to purchase a percentage of the property along with Cross Keys and is aimed at helping first-time buyers get on to the property ladder.