Croydon Council will buy flats worth more than £3million from the controversial developer it owns, Brick by Brick.

The company was partly blamed for the council’s financial collapse and is due to be closed down in 2024.

The 12 flats in South Norwood could be used to “decant” residents from Regina Road.

The council wants to demolish 1960s blocks of flats which have been plagued by mould and leaks for years – there are more than 130 households on the estate.

This spring, Regina Road residents are due to vote on whether the homes should be knocked down and rebuilt.

It comes two years after shocking conditions, including huge leaks and mouldy flats, were exposed in the South Norwood estate.

The council  has agreed to buy Trellis Mews, a Brick by Brick development off Avenue Road, which is half a mile from Regina Road. 

The council will pay £3.3million for the 12 one and two bedroom flats along with the freehold of the site – £1.2m of this is covered by a grant from the Greater London Authority.

It was first discussed by the council’s cabinet in November 2022 when it was agreed the final decision would be made by director of resources, Jane West. 

Her decision was published by the authority on March 28.

A council report said: “Trellis Mews provides for key new homes that can be used to decant tenants from Regina Road and provide them with much improved housing.

"Without acquiring these homes the Council could face significant delays in developing Regina Road, which would simply result in more costs via maintenance and management of Regina Road properties.

“It would be better to start the Regina Road development sooner as the costs of managing and maintaining Regina Road Housing Estate would be inefficient.”