Southwark Council has pledged to build some 1,000 new council homes by 2020, targeting under-used, vacant or currently problematic sites for the developments, which will be funded through other regeneration work.
It said the first sites for the new homes had been identified as Chaucer, South Camberwell and Peckham.
Southwark said the new housing would be council-funded and managed, and that 50 per cent of the properties would be for so-called “local lettings” aimed at existing local residents in priority need.
Council leader Peter John said the capital faced an “affordable housing crisis” and that the need for additional housing was only going to grow.
“We are taking immediate action to address this crisis by building new council housing on a scale unheard of in London for over a generation,” he said.
“Over the past year we have already delivered over 600 affordable homes in Southwark, but 1,000 new council homes will be more than have been built across the whole city for the last decade.
“It makes absolute sense to use the returns from our successful regeneration and development projects to invest in council housing.
“This will provide a secure and sustainable answer to the problem of an ever-rising housing waiting list."
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched