Be First, Barking and Dagenham's wholly owned regeneration company, will transform a row of former garages into seven houses in Barking, after councillors gave the green light to plans last week.
The development in Wivenhoe Road will feature five two-bedroom houses and two three-bedroom houses, available for rent through Barking and Dagenham Council's lettings company, Reside, starting at a discounted local market rate.
Jennie Coombs, head of affordable housing at Be First, said: "By making the most of brownfield sites in Barking, we have turned derelict garages into genuinely affordable homes for ordinary Londoners."
Be First is planning to develop the site throughout the winter.
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