Work has begun on a �102 million development that will bring hundreds of new homes to Canning Town.

The project, in Fife Road, will also see Keir Hardie Primary School completely rebuilt.

The first phase will provide 139 new homes by 2013 and when complete there will be 649 new properties.

Affordable homes will be “pepper-potted” throughout the new development.

The site was previously home to tower blocks, which have been demolished.

Newham Mayor Sir Robin Wales broke ground on the development — part of the �3.7 billion Canning Town and Custom House masterplan — on Thursday.

Sir Robin said: “This development represents a crucial part of the borough’s physical and social regeneration.

“We want our residents to have the same opportunities and aspirations as people living elsewhere in the capital and this project will provide our residents with a living environment of which they can be proud.”

Sir Robin was joined by Thames Gateway Development Corporation Peter Andrews, Neil McCall from affordable housing provider Affinity Sutton and Richard Cherry, deputy chairman of Countryside Properties, which is carrying out the work.

Mr Cherry said: “We are delighted to be starting work on this redevelopment, which will offer much-needed new housing and a new Keir Hardie school in a high quality living environment.

“Together with our partners, Countryside Properties is at the forefront of the regeneration of Canning Town and is committed to developing homes and places that become part of the community. The qualities of this regeneration will be felt across East London and will help to advance the whole community for the future.”