Lovell has started work on £78.4m scheme to build more than 400 new homes in Dagenham, in partnership with affordable housing provider, Home Group.
The scheme at Lymington Fields will deliver 418 new homes in total by 2019, and will be built on public sector land owned by the Greater London Authority.
It will be a mixture of affordable rent, shared ownership and private sale properties.
Lovell, which is part of the Morgan Sindall Group, will begin the first phase of the development by building 83 new homes, expected to be completed later this year.
Home Group will also build 22 affordable homes and 20 shared ownership properties in the first phase.
The second phase of the development will see the partnership build around 293 homes, starting in 2015.
Architects Pollard Thomas Edwards, designed the development, which will be a mixture of houses and one and two-bedroom flats.
Mayor of London Boris Johnson said: “This is one of the largest regeneration projects ever seen in Dagenham and will transform this site into hundreds of much needed new low-cost homes.
“This former gravel pit is part of thousands of acres of land I’m releasing to double the number of homes being built for hardworking Londoners and ease demand for more good quality homes.”
Lovell regional director Peter Taylor says: “We’re delighted to be working in partnership with the mayor of London, the London Borough of Barking and Dagenham and Home Group to create this vibrant new neighbourhood.”