London Borough of Redbridge has signed a £50m deal with Lovell Partnerships to deliver a near 160-home scheme on the site of a former school in Ilford.
DDS Demolition has started site clearance and enabling works at the Loxford Lane site with the aim of starting piling works in August.
The homes to be built will be a mixture of 1, 2 and 3-bed flats spread across four blocks of between 5 and 7 storeys as well as 17 family houses.
The site will also see improvements to green and play areas as well as refuse and recycling stations.