The board of South Kilburn New Deal for Communities has called for the organisation to be turned into a community-based housing association as part of the £715m regeneration of the area.

The news came as Brent council approved the NDC’s plan to demolish 1534 council homes in the north-west London district and replace them with 3000 new homes.

Jack Davies, chief executive of the New Deal project, said an association would be the ideal vehicle for the renewal. “Our favoured option would be to establish a community-based housing association, which could then be merged into the group structure of an existing association.”

Davies added: “We want to make sure this area is never a drain on the national or local exchequer again. An association would give the community revenue into the future.”

The NDC project will request bids to deliver its 15-year plan later this month. Its tender document includes six options for regeneration vehicles, one of which is to keep the stock under council control.

The regeneration will include the refurbishment of 900 homes and is to be paid for by the construction of homes for sale, as well as £18m from the NDC and £10m from the council.

In addition the council is offering up to £200m in land free for the programme.

It is hoped that work will start on the first hundred show-homes by October this year.