Planning applications have been submitted to Merton Council for 2,800 new homes in Eastfields and Ravensbury in Mitcham and High Path in South Wimbledon.

Clarion Housing Group is investing £1bn into the scheme that will regenerate existing council estate neighbourhoods after four years of consultation.

Planning permission has already been granted to demolish disused garages and build 21 homes in the Ravensbury estate and 134 in High Path. Demolition is scheduled to start later this year.

Clarion estimates that the building work, which will take place in phases over the next 12 years, will create about 500 construction jobs in addition to hundreds of apprenticeships in trades work and professional services.

Around 1,000 of the new homes will be used to rehouse existing tenants and homeowners from the three estates.

All existing tenants and homeowners that bought houses under the right to buy scheme or on the open market before May 2015 are eligible for Clarion’s rehousing offer.

Paul Quinn, Director of Merton Regeneration at Clarion said: “Our primary responsibility is to residents of the three neighbourhoods so we’ve been discussing regeneration with them every step of the way.

“We’ve pledged to keep these communities together by guaranteeing that every existing tenant of ours and resident homeowner has the option to remain in their neighbourhood at no additional cost.

“Our regeneration proposals will contribute to prosperity, health and wellbeing through job creation, opportunities for local businesses, better community and green spaces and links to local areas.

“We will also provide extensive opportunities for training and employment and a range of initiatives to improve the life chances of young people in Merton. This is an exciting time for Merton and we’re proud to be involved in its transformation through our £1bn investment.”

Clarion estimate there are currently 608 homes in High Path, 465 in Eastfields and 192 in Ravensbury. Including the replacement houses, about 1660 homes will be built in High Path, 800 in Eastfields and up to 180 in Ravensbury.

This means that after the replacement homes have been built for the existing tenants, an extra 1,800 homes will be available to rent and buy.

Over-crowding has been an issue on some council estates, and the landlord has promised that when replacement homes are built, families will be provided with houses that are of an adequate size. This could mean that families currently living on the estates end up with larger houses.

Plans for the style of houses vary on each estate. In Ravensbury, new housing will be low rise and not over four stories. In High Path, Clarion says that nothing will be built as high as the existing 12 story blocks, which about a third of people on the estate currently live in.

The plans will also see the creation of parks and other green spaces for residents to enjoy.

Clarion was formed last year following a merger between Affinity Sutton and Circle Housing.