According to the council, Church End is one of Brent's priority growth areas and will see regeneration set around the economic revitalisation of the local centre.
For the new market and homes to be built, the market in Church End Car Park will be closed and a temporary replacement created a ten minute walk away in Neasden Town Centre, with proposals to consult stall holders on the details in the coming months.
The redevelopment plans were granted planning permission back in 2013, following public consultation with local residents, identifying the site for redevelopment.
Councillor Margaret McLennan, lead member for housing and development at Brent Council said: "What we are aiming to achieve is a revitalised market square, set in an attractive and appealing area that will be a focal point and source of pride for market traders and local residents.
"These plans have been on the table for a while now so I am happy that we can get going with actually developing the site.
"We will be working closely with the market traders though out and will manage the transition as best we can to minimise disruption."