Havering Council has approved proposals to transform a Romford industrial estate into 850 new homes.
The redevelopment of Bridge Close is a joint venture between the council, Savills Investment Management and developer First Base, and will feature at least 30% of homes earmarked as affordable housing, a primary school and community and health facilities.
The housing will be located on the current industrial estate at Bridge Close, leading onto Waterloo Road and Oldchurch Road, which will also be redeveloped.
A new pedestrian bridge over the River Rom will grant easier access to the train station and improvements to the ring road will improve traffic and access to the town centre and new Crossrail station.
First Base managing director, Elliot Lipton, said: "We welcome the opportunity to partner with Havering Council on this ambitious regeneration of Bridge Close.
"This partnership will deliver high-quality homes for local people, as well as long-term jobs, workspaces, a revitalised River Rom and much-needed community facilities.
"Bridge Close has the potential to have a significant positive impact for the local community and create an inspiring place where people can live, work and socialise together."
Bridge Close was allocated as a ‘key site’ for residential development in 2008 in the Romford Area Action Plan, and was confirmed in the Romford Redevelopment Framework, and agreed by Havering Council’s cabinet in 2015.
The housing development forms part of Havering Council's wider plan to regenerate Romford.
Other projects in the area include the £25 million Sapphire Ice Rink and Leisure Centre, which is expected to open in spring 2018, a £1.4 million upgrade to Romford station to cater for the new Elizabeth line rain services that will connect Romford to central London and Heathrow airport, and improvements to Romford Market.
A 3,000-home development in east London has been approved by City Hall.