Land remediation contractor Sirius is carrying out site clearance, which will continue for up to five weeks and includes removing buried structures and any contamination.
The first phase of the Flemingate regeneration plan will see 130 homes built before shops, a cinema, hotel, college and offices are built at the former factory site.
New campus plans for East Riding College were initially earmarked for the first phase, but the proposal was hit by a funding setback last year.
The consortium behind the regeneration plans – Wykeland Group, CP Group and Quintain Estates and Development – chose Stamford Homes as the preferred developer for the residential part of the development.
Steve Woomble, Stamford Homes sales director, said “We are delighted to be part of this exciting development for the area, in particular to showcase our range of energy efficient homes which have already attracted some early interest from potential buyers.”
The housing scheme will have two, three and four-bedroom properties, which are expected to range from around £150,000 to £235,000 each.