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Tenants in Finsbury are gearing up for a battle with the Town Hall over plans to knock down and redevelop parts of their estate.

The proposals, which Islington Council says are at a “very early stage”, include knocking down Pleydell estate’s low-rise properties – housing some of its most vulnerable tenants – to build new three- and four-storey blocks for older people, with some properties expected to be for private sale or rent.

The plans are part of a move by the Town Hall to build council homes on its estates. Recently, Kings Square estate in Finsbury and Dover Court estate in Canonbury have had similar developments.

Should the plans go through, tenants will reportedly be offered £1,000 in compensation and £2,000 to cover moving costs. New homes would be made available to them first.

But Nigel Gansell, 76, who lives in Radnor House, a row of one-bedroom bungalows which could be knocked down, said: “I’m not interested in the money. I am really happy here in this flat. We’re in the fight of our lives here. We have to defend our estate.”

He added: “If they touch our gardens [behind Radnor House] it would be even worse. I accept there’s a need for more social housing but this is already an overdeveloped estate.”

Pleydell Tenant Management Organisation, which manages the estate, is opposed to the plans.

The Town Hall, which has 19,000 people on the housing waiting list, said no decision had been made and there were no firm proposals.

Council leader Richard Watts said: “Any new council homes would be made available to local estate residents first. There would be tailored accommodation for older people of the estate, with improved homes for those residents. We always involve residents on opportunities for improving their estate, as well as developing new council homes.”