Pictures of a pothole that size makes me cringe, given how low/hard my car is! I think you'd definitely have a case if you took that to the council, assuming the road is one that they are responsible for maintaining and that it isn't in some way a private access road...

If the flats are all being knocked down then its clear to me why the council would not wish to spend money on the roads in such an area, any redevelopment is likely to remodel the existing roadlayout, that said whilst I understand why they wouldnt *want* to spend money re-surfacing roads that are due to be torn up, they are still responsible for keeping them in passable condition for the average road user!