Your description sounds pretty bad - and along similar lines to what they are trying to do at Cressingham Gardens.The Lambeth tweet refers to the new buildings along the railway line, at Clapham North. Luckily, this will not involve demolition of any homes.
Those buildings are just the start. Some info is here:
Lambeth is very quiet about many aspects of this regeneration project. On the surface, it seems like it ticks off all of the boxes: 'public engagement', 'affordable housing', etc. On a better look, things stop adding up. Such as - the new housing units will be 60% more expensive then current homes: which means, for example, that a mortgage-free freeholder wishing to stay on the estate would have to take mortgage again. Lambeth avoids the term luxury flats.
Having spoken to the architects, I understand that the intention is to demolish all of the estate (including freehold properties) and to replace those with those square tall high density units.
No final decision had been taken, therefore the number of homes it will create is unknown. Decision is due in the next month or so.
The Fenwick newsletter is not terribly readable (it might help if it could be downloade as a pdf) and does not seem to have any pictures of possible future options - simply repeating ad nauseam that the council are consulting consulting consulting..