The White Hoe and Ivy Cottages on Old Castletown Road are being demolished this week with the land to be returned to nature.
Work to take apart the properties began on Monday, with Manx Utilities saying the decision to do so was taken after an alternative option couldn't be found after numerous ideas for them were looked into.
The authority is now in talks with Manx Wildlife Trust over plans to improve the area for wildlife, adding the demolitions will improve the safety and visual appearance of both sites.
Plans are in place to minimise disruption on the busy highway during the work which is expected to take several weeks.
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