The award of the Townscape Heritage Initiative grant was announced on Thursday 28 March.

The money will be used to work up a second bid with the local community and other partners for a further £1.95million that would be spent on areas in Electric Avenue, parts of Atlantic Road and the Reliance Arcade.

If successful, the money from this second bid would be used to bring back into use empty residential and commercial premises and reinstate lost architectural features such as shop fronts, signage, window and other historic detailing to improve the historic environment.

Councillor Pete Robbins, Cabinet Member for Regeneration, said: "This is great news for Lambeth and Brixton. This was a very competitive bid and the fact that we were successful speaks volumes for the importance of this part of Brixton.

"Looking ahead, this would provide a catalyst for the redevelopment of Brixton Station and complements the success of Brixton Market and Village."

Sue Bowers, Head of HLF London, said: "The Brixton Townscape Heritage Initiative is right at the heart of Brixton and includes Electric Avenue which became an internationally famous landmark thanks to Eddy Grant.

"This is an exciting project which will not only conserve the area but also help local businesses to grow and the wider community to feel more engaged with the history of where they live. We feel hugely optimistic about the long-term impact of these proposals and so have not hesitated in awarding our initial support as well as a more immediate development grant.

"We look forward to working with the London Borough of Lambeth and watching the project progress over the coming year."

Note to editors

An HLF Townscape Heritage Initiative (THI) first-round pass means that money has been set aside by HLF. The applicants can then progress to the second round and send a detailed second-round submission to secure the full award. This early level of strong financial commitment means that THIs can build strong partnerships with the assurance that funding for their scheme is in place provided their final proposals fully meet the programme criteria.

THIs encourage partnerships of local organisations to carry out repairs and other works to a number of historic buildings, structures or spaces. Grants currently range from £500,000 to £2m.

From April 2013, the programme will be known as Townscape Heritage with grants available from £100,000 up to £2m. The next application deadline is 31 August 2013 with decisions being made in January 2014. The new programme was launched on 25 March.

To date, HLF has invested over £214m regenerating towns that have suffered serious social and economic decline.

Further information

Lambeth council press office: Paul Dietrich on 020 7926 2559, email: PDietrich@lambeth.gov.uk.