The company received planning approval from Lichfield District Council for the project in August this year.
The development on Chesterfield Road will consist of two buildings comprising three two-bedroom and four one-bedroom maisonettes, which will be for sale under the government’s Help to Buy scheme.
The homes will also have dedicated parking and landscaped garden areas.
The development will benefit from access to a range of shops, bars and restaurants, as well as good links for commuters, with Lichfield City train station a five-minute walk away.
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IDEASE Construction has been appointed to deliver the scheme, which is set to reach practical completion in Q4 2022.
Kevin Sharkey, managing director at Key Land Capital, said: “It’s fantastic to see work start on site at our Chesterfield Road development.
“These seven properties will provide much-needed, high quality new homes for young first-time buyers in a great location.
“We have further plans to create more new homes in Lichfield and we hope to deliver a significant boost to the city’s residential sector at a time when the UK is crying out for more new homes.
“Our team has an enviable track record of creating outstanding residential developments in desirable locations.
“We have exciting plans for the future of Key Land Capital and the current housing shortage makes us even more determined to deliver high quality homes.”