Residents of the Cressingham Gardens estate in Tulse Hill, south London, have won the right to a second judicial review into the council’s decision to knock down the estate.
The council’s plan would cost £110 million and would mean the demolition of large parts of the estate.
The plan also includes the formation of a special purpose vehicle, a part-privately owned company, to take over the development following the demolition.
The first judicial review into the redevelopment found that the council had dismissed alternative plans put forward by residents unfairly.
Five other estates in Lambeth are up for redevelopment and residents have been fighting back against all of them.
If successful, the judicial review could bring the council’s plans to a halt and could have repercussions for the other campaigns across the borough.