Developer Countryside has been chosen as the preferred bidder to deliver a huge rebuild of an estate in south London.

It has been selected by Metropolitan Thames Valley Housing Association (MTVH) to deliver the £800 million revamp of the Clapham Park estate in Lambeth, South London, following a lengthy tender process.

The project will see a joint venture between Countryside and MTVH to continue the transformation of the estate, which has already seen 1,500 homes either built new or refurbished. Another 2,500 homes will be built, with a number of community facilities and public amenities being added. These will include a community centre, market square and two parks, shops and commercial space.

In addition, the estate will be powered by a district heating system, providing free and eco-friendly heating. Green and solar roofs, cycle parking and electric vehicle charging points will add to the green credentials of the new development.

Planning permission for the new development was granted in 2019 and the first 50 of the new homes are already under construction, with the new joint venture set to take care of the rest. By the end of the project, the 36-hectare estate will have 4,000 homes.

The next phase will start in the spring of next year and the first of the new phase of homes will be completed in 2024. This project could lead to one of the largest orders for building materials in London over the next two years.

Chief executive of MTVH Geeta Nanda said: “This is an important moment as we work towards completing the regeneration of Clapham Park and making a very real difference to the community living there.”

Group chief executive of Countryside Iain McPherson said the firm is “thrilled” to be forming the joint venture.

He added that with the combined commitment to the project, it is sure to succeed in “delivering a vibrant and inclusive series of neighbourhoods with safe, secure streets and ample public and private green space, while maintaining Clapham Park’s unique character and keeping the community at heart.”

The deputy leader of Lambeth Council and cabinet member for planning, investment and new homes, welcomed the news, saying it will help ease the housing crisis. He added: “This joint venture will make an important and positive contribution towards delivering on our targets and ensuring our residents can enjoy warm, safe and secure homes.”

While east London is expected to accommodate the bulk of London’s population increase in the coming years, the south east of the capital has been witnessing a major construction boom in both residential and commercial construction.

The biggest project in the area is Nine Elms, a 227 hectare project on the south bank of the Thames that is partly located in Lambeth and partly in Wandsworth as it stretches from Vauxhall Bridge to Battersea Power Station. Around 20,000 new homes are being built there.

The area has seen a plethora of new skyscrapers rising up, while below the streets a new spur of the Northern line and two Tube stations have been opened.