The mural is yards from Billy's home
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Residents are to be consulted about the future of an 8ft-high mural in memory of 15-year-old murder victim Billy Cox.
The work was created by a graffiti artist yards from Clapham North, south London, where Billy lived and where he was shot dead on 14 February.
Plans to paint over the memorial have angered the teenager's friends.
A Lambeth Council spokesman said: "We're going to hold a survey of residents to gauge their opinions on the siting of the mural."
'Fitting memorial'
The decision was reached after Fenwick Place estate residents met Lambeth Council officials last week.
The council had previously said the tenants' association did not want a constant reminder of the tragedy and that a permanent memorial would instead be created in a nearby play area.
"We fully support the young people in their aim of getting a fitting memorial to Billy," said a council spokesman.
Meanwhile, the council has pledged to help residents set up a Billy Cox memorial fund to raise money towards a computer centre for young people.
The teenager died when he was shot in the chest inside the ground floor maisonette in Fenwick Place.