Ashford Borough Council has become the first district authority to agree to a Private Finance Initiative deal to regenerate a housing estate.

It has signed a 30-year contract that will allow the council to use £200m in investment over the duration of the contract.

The regeneration of Stanhope Estate will see the demolition of 410 flats, the provision of 442 flats and houses, a new commercial centre (once the current shopping centre has been demolished) and improved community facilities.

Ashford Borough Council head of housing Tracey Kerly said: “This has been a hugely complex process but ultimately will benefit thousands. It’s not just a straightforward refurbishment contract to bring homes up to standard but full-scale regeneration of a mixed-tenure estate.

“As well as a better environment we aim to create a far more balanced community by introducing a mix of rented, shared ownership and open market housing.”

The Chysalis consortium will regenerate Stanhope over the next five years. The consortium is made up of the Gleeson Group (development partner), Moat Housing Group (registered social landlord responsible for day-to-day housing management) and the Nationwide Building Society (which is funding the project).