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Work has started on a £20million development in Canonbury that will lead to the creation of 70 homes.

Of the new properties at the Dover Court estate, 51 will be for council rent, largely built on a site previously occupied by disused garages. And of the new buildings 23 are specially designed for older residents.

The plans are part of a Town Hall strategy to create new council homes on Islington estates for those in overcrowded homes and households on its 19,000-strong waiting list.

Recently, King Square estate in Finsbury has undergone a similar scheme and the Tribune revealed last week that the nearby Pleydell estate has also been earmarked for redevelopment. And earlier this month Town Hall chiefs launched a consultation on plans to build new homes next to Besant Court and Hathersage Court, two council blocks in Newington Green.

The new council homes at Dover Court, which will be built by developer Lovell, will be offered through Islington’s local lettings scheme, giving council residents from the neighbourhood first dibs on the new homes for rent. Among those who could benefit are those looking to downsize and young families who need a bigger home.

The 19 private ­properties for sale will be offered first to people ­living and working in Islington.

Town Hall leader Councillor Richard Watts said: “Islington residents, like so many other people across London, urgently need more housing at rates that are genuinely affordable.”