Southwark Council's cabinet has agreed to the disposal of a site in Nunhead for the construction of seven large family homes.
It said Wandle Housing Association had bought 155-161 Gordon Road to build four five-bedroomed family homes for social rent, and three four-bedroomed homes for shared ownership.
Southwark said the sale would generate a capital receipt for the council’s Housing Revenue Account that would contribute to improvements across its remaining stock.
Council leader Peter John did not reveal the exact sum but insisted the figure was “substantial”.
“[It] will be used to provide capital funding in support of the council’s key priorities,” he said.
"This includes the provision, refurbishment and redevelopment of affordable housing and assists the council in meeting its commitment to regeneration and sustainability in housing."
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched