Clarion Housing Group has now completed the purchase of a strategic site to kick-start the regeneration process at High Path on the Old Lampworks site.
Earlier this year Merton Council granted planning permission for 134 homes to be built on the land.
The scheme forms part of Clarion’s wider ambitions to deliver regeneration and contribute to housing growth across the borough.
In April the Group submitted outline planning applications for 2,800 new homes across High Path and two neighbourhoods in Mitcham, Eastfields and Ravensbury as part of the Merton regeneration scheme.
Under the proposals Clarion will redevelop these estates and rehouse all existing tenants and resident homeowners who wish to remain.
Bob Beaumont, Director of Regeneration for Clarion Housing Group, said: “Clarion is committed to boosting the number of new homes in Merton and we plan to invest £1 billion reinvigorating three existing neighbourhoods.
“The purchase of the Old Lampworks site is an important step towards delivering the first phase of our regeneration plans at High Path. These high quality and much-needed homes will be set aside for existing residents so that they can move straight in.”
Construction work at High Path is due to start next summer and the first residents will be able to move into their homes early in 2020.