A project hailed as the largest council housing scheme in Waltham Forest for decades took a major step forward last night.

A developer was approved for the regeneration of the Marlowe Road estate in Walthamstow, which the council described as not fit for purpose when it announced the project last summer.

Mulalley, the Woodford Green-based construction company, will lead the £70million development, which will see 150 of the 298 council homes on the estate demolished and rebuilt, as well as an overhaul of the remaining housing, public spaces and layout.

The council says work will be carried out in phases over a number of years, so residents will be moved within the estate while work is being carried out on their homes.

A total of 250 new private homes will also be built to subsidise the project.

Speaking at a meeting of the council’s cabinet, Councillor Marie Pye, cabinet member for housing, said: “This is one of the most important presentations I’ll make to cabinet.

“This is probably the biggest housing project this authority has planned for many decades.

“This means this is really going to happen.

“We’re going to do huge regeneration work, knock down huge amounts of housing and rebuild.

“We’re going to provide the best quality, best designed, best places to live and retain under council ownership, so I’m really pleased.”

Mulalley was chosen from 25 developers and housing associations after a six-month tendering process.

The council said the project will contribute to the regeneration of the Wood Street area and reduce anti-social behaviour.

The council’s housing budget will contribute £10.2m towards social housing and the rest of the cost will be made up from private sales.

All work is subject to planning approval and the completion of a development agreement, which will be put before cabinet in the summer.

Mulalley is currently building the Essex Wharf development in Lea Bridge Road, Leyton.

Countryside Properties Ltd was chosen as a reserve developer.

Work is likely to begin in summer 2015 for completion by autumn 2020.