With the support of housing authority West Somerset Council and planning authority Exmoor National Park, work is underway to develop the site just off Barns Close Mead.
The tenures of the new houses are split, with six being built for social rent, six for affordable rent and the remaining six earmarked for shared ownership.
The affordable rent and shared ownership homes have received a funding boost to the tune of £498,000 from Homes England, the national housing and regeneration agency for England.
The development represents the largest housing development in the town for many years.
It will be a major step in providing housing for people in and around Dulverton whose housing options have, until now, been limited.
LiveWest New Business Manager, Adam Preece, said: “The new homes in Dulverton provide a fantastic opportunity for local people to access great affordable homes.
“We know that there is a real shortage of affordable housing on Exmoor, especially for young people carrying out vital work in agriculture and across the National Park.
“There is a genuine choice of property – people can rent or part buy their new home through the shared ownership scheme – and one, two and three-bed homes are all available.”
Work on the development is set to begin imminently and is expected to be completed in June 2020.
Neil Woofenden, Managing Director at Woofenden Construction, said: “As a family-run business, whose core values are built around sensitive and sustainable construction, we are absolutely delighted to be working with LiveWest on this exciting housing development for the people of Dulverton.
“To be involved with a project that provides lower cost homes, and enables local people to welcome new residents into its community, is something that we feel proud to be part of.
"We're really proud to be bringing our expertise to this project. Our family-run company has been operating across Devon and in the National Park for 30 years, so we're delighted that we'll be helping to provide housing for local people. It's really important to us that we build homes in a sensitive and sustainable way.”
Councillor Keith Turner, West Somerset Council Cabinet Member for Housing, said: “This is a welcome development providing a brilliant opportunity for young, local people to occupy an affordable house in the area that they were brought up in.
“I think it’s great that LiveWest and Woofenden Construction are working with Homes England to provide a development of all affordable housing.
“It’s the first sizeable development in that part of West Somerset for several years where property prices are usually out of the reach of younger people on lower incomes.”
Versha Koria, Affordable Housing Senior Specialist for Homes England, said: “We are really pleased to be supporting the delivery of new affordable homes in Dulverton. Housing in our high-value rural market towns is vital and will make a huge difference to people’s lives.”