Barking and Dagenham Council granted outline planning permission earlier this month for a 850-home development on the Gascoigne West estate in Barking.
The proposal, which involves demolishing and replacing 179 flats bordering St Pauls Road and Abbey Road, will provide an extra 671 homes , with over 40% at rents below market rent levels, and shared ownership.
Pat Hayes, managing director of Be First, the council's wholly owned development company which is leading the project, said: "We aim to surpass the quality and design standards that we have set at Gascoigne East, offering hundreds of badly needed new homes for local people at a range of rent levels and prices.
"This is a huge milestone for this project, which will make much better use of the space, with more traditional street patterns and green spaces."
In the first six months of the flats going on sale, the CUT properties will be subject to restrictions to stop individuals or companies from buying more than one.
Cameron Geddes, cabinet member for regeneration and social housing, said: "We recognise the difficulties people face in getting on the property ladder and we are determined to try and prevent people coming here and buying up multiple flats that they have no intention of living in so it's residents first and foremost who benefit."
Fraser Brown MacKenna Architects was appointed by the council to design the estate regeneration. Director Simon Fraser said: "We have taken a very sensitive approach to the site’s historical context connecting and improving the existing townscape to create an attractive people-friendly scheme for the long-term benefit of local communities."
The planners, who endorsed the £250 million project, agreed that the development would result in a much-needed regeneration of the 2.4ha low-density area, providing significantly more and better-quality housing, in a mix of sizes, in a safer and healthier designed environment.
The project team will now start generating detailed designs, and a further planning application is expected in late 2018 with onsite work to begin in 2019.
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