As the world faces resource scarcity, there is a need to move from the wasteful linear economy to a resource-efficient circular economy, which is not only beneficial for the environment, but also for the economy and the society. To accommodate a circular economic system, circularity principles should be applied to our urban built environment. Public housing estates in the UK, being economically and socially deprived, can adopt circular strategies at household, estate and neighbourhood level for economic, environmental and social benefits. Thus, a key research question emerges: How to enable circular strategies in public housing estates in the UK for environmental, social and economic benefits? With insights gained from literature review and field research, a circular framework with four principles and circular systems with physical space, programming, stakeholders and enablers are proposed. A framework for benefits and measurement is also developed. The circular framework and systems are then applied in South Bermondsey, one of most deprived neighbourhoods with a high percentage of public housing estates in Southwark, London. Circular strategies like Circular Hubs and Circular Hood are deployed. Environmental, economic and social benefits from the circular systems are then estimated to evaluate the design application. To scale up the circular framework, recommendations for local authorities and developers are provided for applying the circular framework and systems in future new development, either smaller urban development projects or larger scale master plan type projects to build a sustainable future for cities with circular neighbourhoods.