WORK on Merstham's regeneration could begin next February, according to Raven Housing Trust.
New plans for the long-awaited development were unveiled by the social housing provider and Reigate and Banstead Borough Council earlier this year.
The proposals, which include building a new food store, shops and flats on the old Iron Horse site, as well as a new community facility on the Triangle, were passed by the council last month.
Raven is now preparing a planning application for 40 homes on the Purbeck Close site, behind Portland Drive – fewer than the 49 homes which were muted for the site originally.
The scheme hit delays as both parties worked to ensure it was "financially viable", but now hopes are high that work will finally proceed.
Raven chief executive Jonathan Higgs said: "We're really excited to be able to get these long-awaited plans moving again. The first step will be to get planning permission for the Purbeck Close site, where we hope to start work by February 2014 at the latest."
The Triangle site will accommodate a larger community and youth hub and two shops, while a food store, three shops and ten flats will be built on the Iron Horse site. The Portland Drive parade will then be demolished to make way for 53 new homes.
Raven is investing £3.7million to build the homes on Purbeck Close while the council will invest a further £1.25million to help build the new shops.
The promise of a new community hub was welcomed by many in the town.
Zainab Nasir, 12, who attends the current youth club, said: "There is stuff here for the children but it would be good to have more. I think the neighbourhood would like to see it made nicer than what is already here."
Kevin Jones, 46, was born in the area and has lived there all his life. He said: "It needs doing, how long has the Iron Horse site been empty?
"It needs to be properly done, it's good they are pulling [Portland Drive] down to start again."
