The rebuilt of the 1960s Cambridge Estate will eventually provide more than 2,000 new homes.
A total of 941 affordable homes, including 767 council homes, will be built under the scheme which is being carried out in five phases by the council and a developer.
Residents voted in favour of the regeneration in 2020, with 73% of those eligible to have their say supporting the plans.
Sir Ed Davey says the regeneration of the Cambridge Estate is exciting.