Mr Woldehiwot and his wife, who have two daughters, had been living on the estate for 17 years.
Mr Woldehiwot said the council had offered to buy his property, which he bought on the open market, but he challenged the valuation because it “would not allow us to buy any home in London”.
The family also wanted to stay near the local schools and community.
“It’s a hostile takeover of working class people’s homes. Some of us have to say no,” he said.
The Woldehiwots said they were technically homeless and were staying with friends, but they would continue with their legal challenge.
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