Sadiq Khan today announced a landmark deal to secure more than 1,550 affordable homes on the former Dagenham Stamping Plant car works site in East London.

The agreement, which involves an £80m grant from the Mayor’s Affordable Housing Programme, has enabled the Peabody housing association to acquire the 45-acre site from Europa Capital. The mixed-tenure development will provide homes at London Affordable Rent and for Shared Ownership. 

As part of an extensive four-year ground remediation project to prepare the land for housing, Europa Capital and its advisers St Congar Land extracted more than 322,000 tonnes of material from the site, 98% of which was recycled. 

The Mayor of London said: “Dagenham Docks is one of the most exciting areas of regeneration in London, with this former powerhouse of East End industry set to be comprehensively transformed over the next decade.

 “I’m pleased to be continuing City Hall’s partnership with Peabody to build the genuinely affordable homes Londoners deserve. I’m confident that their expertise, alongside the vision and drive of Barking and Dagenham council will deliver a thriving new neighbourhood for east London, whilst paying tribute to the area’s unique heritage.”

Plans are still in the early stages, but it is thought the site could eventually support around 3,000 homes.  Working closely with the local community, Barking and Dagenham Council, BeFirst and City Hall, Peabody plans to transform the disused site into a sustainable neighbourhood that complements the wider regeneration in the area.

The project is part of the housing association’s strategic partnership with the Mayor of London which is on track to see it start 7,000 new affordable homes for London by 2023, including as part of the comprehensive regeneration of Thamesmead and at the former Holloway Prison in Islington.

Subject to final confirmation of the sale, construction on the site will start by March 2023, with the aim of completing by March 2028.

Councillor Darren Rodwell, Leader of Barking and Dagenham Council said: “The Ford Stamping Plant was and always will be a big part of our borough’s history. The now derelict site will be put to good use, making way for much needed homes for local people.”

“Accelerating housebuilding has always been a priority for us here in Barking and Dagenham, and this is another positive step forward, alongside the 3,000 new homes being built by the Council itself by 2024.”