The demolition of Mellish Court has started this week, with the building being taken apart one floor at a time.
The 19-storey 60s building in Bletchley is being taken apart one floor at a time, with plans for around '95% of the materials' from the building to be recycled.
It follows the demolition of The Gables in Wolverton earlier this year.
Once complete, the City Council is set to clear the space and discuss plans with local people for how the site should be used, a spokesperson says.
In 2021, the City Council found out that work was needed to meet new fire safety standards leaving officials with over 200 families to rehouse.
Cabinet Member for Adults, Housing and Healthy Communities, Cllr Emily Darlington said: "Finding new and better homes for our tower block tenants has been our initial priority and now that’s been done we can focus on replacing the blocks.
"We’ll work very closely people living near to Mellish Court and The Gables to create new healthy and happy neighbourhoods in these areas."
