Jessup Partnerships is building 117 homes for housing association Midland Heart.
There will be a mix of 103 semi-detached and terraced houses, ranging from two to four bedrooms, as well as 14 maisonettes. All will be timber-framed, to designs by Leicester-based RG+P Architects.
The site, empty since 2007, is the biggest residential scheme in Leicester.
The Edwardian depot building itself opened in 1904 and construction work is to be completed by winter 2024.
Jessup managing director Chris Timmins said: “This is an iconic site and we understand its importance to the city. We are honoured to have the opportunity alongside our partners Midland Heart to transform this derelict site which has stood disused for so long into new homes for families and first-time home buyers in Leicester.”

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