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Sutton Council has announced its preferred development partner to deliver 290 new homes in the town centre.
Councillors backed the appointment of house builder Lovell to lead the redevelopment of Elm Grove at a meeting of the housing, economy and business committee last month.
The scheme is set to deliver 50% social rent homes.
Elm Grove, which was built in the 1970s, currently has 73 council homes, which will be demolished in the redevelopment.
Sutton Council said residents have had “long-standing” issues with anti-social behaviour and fly-tipping, a lack of lifts and green space, as well as overcrowding.
In March 2022, 79% of residents who took part in a ballot voted in favour of the plans to redevelop Elm Grove.
The council said the new homes will meet “high sustainability standards”, leading to “more comfort, energy efficiency and lower heating bills for residents”.
Works are scheduled to start in May 2025. All current eligible residents choosing to stay on the estate will be offered a new home.
Jake Short, chair of the housing, economy and business committee of Sutton Council, said the move was a step forward in delivering new “quality and affordable homes” for residents, while tackling the housing crisis.
“Our new council homes across the borough have already been recognised for their high design and environmental standards.
“The selection of an experienced development partner means our goal to deliver incredible homes and open spaces for Elm Grove residents can now move to the next stage.
“We have been driven by what Elm Grove residents want their future homes to look like and now this vision is set to become a reality, with construction works currently scheduled to start early summer 2025,” he said.
Mick Laws, regional managing director for London and the Southern region at Lovell, said: “Regeneration and partnerships are the cornerstone of our business, and we are excited to deliver these new, much-needed high-quality homes for the people of Sutton.”
Earlier this month, Lovell revealed that profits rose by 16% as the total number of homes built through its partnership model increased by 19%.
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