Listed developer Capital Counties is to give a £15m deposit to Hammersmith Fulham council as part of a deal to include the West Kensington and Gibbs Green housing estates in its £8bn Earls Court regeneration scheme.

The council last night agreed with EC Properties, a Capco subsidiary, to explore proposals to redevelop the 760 council houses in the west London suburb, despite resistance from the estates’ residents.

The deal involves EC Properties paying the council a non-refundable deposit of £5m, and another £10m, which is refundable if no development plan can be agreed in the next year.

An outline planning application for the Sir Terry Farrell-designed scheme was submitted last month. Under the plans, more than 7,500 homes will be created which, together with the Seagrave Road residential scheme, will total 11.4m sq ft of development. The plans have met substantial local opposition, and the West Kensington and Gibbs Green Estates’ residents group intends to mount a legal challenge.