Current Avenue Road Estate residents will be allowed to move into new social rented homes by mid-2030, as the council pursues an institutional investor to fund the scheme.
Construction on the much-delayed Avenue Road Estate redevelopment in Leytonstone will begin in mid-2027, Waltham Forest Council has confirmed.
The news comes as it was revealed the council will pursue an institutional investor model to deliver the first phase of the scheme, rather than a traditional developer-backed model.
In a cabinet report approved in December, the council deemed an institutional model approach as more affordable, stating it could commit the level of upfront capital investment required for a traditional developer-backed scheme.
Institutional investors in the UK are large organisations like pension funds, insurance companies, mutual funds, sovereign wealth funds, and large asset managers.
The Echo understands that 116 social rent units will be delivered as part of the first phase, with completion earmarked for late 2029 and first occupation by 2030.
A further 501 homes will be delivered as part of the second phase, which may still be delivered through a more traditional developer-backed model. That phase will deliver an additional 126 social rented homes, ensuring all 242 existing council homes are replaced.
91.5% of Avenue Road Estate residents voted in favour of rebuilding the estate in 2021 and planning for 617 new flats was approved in January 2023. When residents signed up to the scheme, they were under the impression that the first phase of the development would be complete in 2026.
But in August 2023, developer Bellway backed out of a joint deal with the council to rebuild the estate, saying it was no longer financially “viable” due to difficult market conditions.
In a bid to keep the promise of regeneration alive after Bellway pulled out, in July 2024 the council secured a total of £190million from the Greater London Authority (GLA) towards five strategic projects in the borough including Avenue Road.
Efforts were then made to secure another developer, with the council’s director of housing delivery Mark Crane telling residents at a meeting in summer 2024: “We will robustly test the business strength of any potential partner, but also make sure that their case is realistic and ensure there are contingencies within their budgets to absorb financial risks.”
However, due to a range of factors including “rising build costs, stalled sales values, and the council’s financial circumstances”, it was decided a traditional developer backed model was no longer viable.
Because of revisions to the regeneration scheme’s delivery structure, a further engagement exercise with residents will begin in January.
A fresh report will be brought back to cabinet in late summer 2026 to approve the final terms agreed with an institutional investment partner, before construction begins the following year.
Residents of the 1960s estate have previously told the Echo about rampant open drug taking and anti-social behaviour.
One resident, who also criticised the regeneration delay, said: “Our mental health hasn’t got years [to wait for a rebuild]; we’ve got kids playing right next to drug users strapping up and shooting drugs.”
Occupants have also spoken about a range of structural issues with the estate, which was built using prefabricated concrete panels. These include “building movement”, “gaps in stairs and window frames”, and “leaking ceilings”.
One resident said he had seen mice running around his bedroom because the wall had moved away from the skirting board, leaving a gap for the rodents to come through.
Another said: “My window doesn’t match my frame. We’re feeling movement. The building is definitely moving and our flats are showing it.”