Barratt and Metropolitan Housing Trust have signed an agreement to regenerate a crumbling 1960s north London council estate by building 2710 homes.
Barnet council has approved the agreement, which will lead to the clearance of the 670-home West Hendon estate, which was built using the large panel concrete system.
Barratt and MHT are proposing that 40% of the development, which will overlook the Welsh Harp reservoir, will be social housing units to replace council homes.
A large share of this will be offered on a shared ownership basis to former tenants who have purchased their properties under right-to-buy legislation.
Brian Reynolds, Barnet regeneration director, said that homeowners would pay a fee to fund the estate management and help solve its recent social problems.