Building work will soon be restarting on flats at the former IYLO site at the northern end of Croydon's Wellesley Road.

The news follows successful negotiations between Croydon Council and the new owner, who purchased the half-built construction project – now known as ‘Island’ – last year.

Since the original investors got into financial difficulties in June 2011, the site has been left boarded up and has attracted increasing criticism.

Regency Homes bought the scheme last July but a number of issues had to be resolved before contractors were brought back onto the site.

Croydon planning officers have spent the past few months in detailed discussions with representatives of Regency Homes to ensure the scheme was viable and all the necessary agreements were reached.

The new planning deal includes a requirement that all work is completed within two years.