Plans to redevelop the former Ford assembly site at Beam Park in South Dagenham had been blocked after Havering Council refused permission claiming it would harm the character of the local area due to the height of the buildings.

But now developer Countryside Properties and London & Quadrant Housing Trust can build a £1bn neighbourhood at the 29-hectare site which sits alongside the River Beam in South Dagenham

Their ambitious plans include a new rail station, two primary schools, a nursery, community facilities, retail and open spaces, as well as the new homes.

As a result of negotiations between City Hall and the site’s developers, L&Q and Countryside, the proportion of genuinely affordable homes has been raised from 35% to 50%, as well as building heights which has been upped by as much as seven storeys since the original plan was submitted.

The site straddles the border of two boroughs: Previously Barking and Dagenham Council approved the development but Havering Council refused permission, over concerns it would harm the character of the local area due to the height of the proposed buildings.

London’s Deputy Mayor for Planning, Regeneration and Skills, Jules Pipe, said: “This is a large, very important site and these plans will deliver 3,000 much-needed new homes, along with transport, schools and community facilities to help make this a liveable and attractive new neighbourhood for this part of east London.

“Having weighed up the evidence available to me and given the overall importance of the application, I have decided to grant approval.

“The wider area around Beam Park has the potential to deliver thousands of new homes and jobs, and could play a crucial role in London’s economy in the decades to come.”