Southwark Council has granted outline planning permission for developer Lend Lease's £1.5 billion Heygate Estate regeneration masterplan.
The decision is expected to deliver some 2,500 new homes and 5,000 new jobs in Elephant and Castle over the next 12 years, and was described as a “watershed moment” by council leader Peter John.
Make Architects’ design represents one of the largest new housing developments in the capital’s Zone 1.
Under the proposals, a minimum of 25 per cent of the new homes will be “affordable” and the regeneration will also add new publicly-accessible squares and gardens as part of a total of 4.5 hectares of open space.
Councillor John said the masterplan’s approval would allow the authority to work with Lend Lease and residents to continue Elephant & Castle’s transformation.
"The Planning Committee's decision to approve the masterplan and endorse our vision for Elephant & Castle is a watershed moment for the borough,” he said.
“The regeneration of Elephant & Castle will take time, but this announcement, and the starting of work on a brand new leisure centre, are all crucial steps towards a greener, safer and more attractive place in central London that people will be proud to call their home.
“It is so exciting to see this vital project gain momentum so that people will finally begin to see those much needed improvements being made on the ground."
Mark Dickinson, Lend Lease’s managing director for development in Europe, said the masterplan approval was a milestone for its commitment to the area.
“We’ve set out our blueprint for the future but there is a lot of detailed work to undertake and we’ll continue working with the community at every step,” he said.
“At the heart of everything we do is the desire to create a sustainable place to live. A truly sustainable environment needs to bring economic benefits, support business growth and local job creation.”
This week’s decision follow’s November’s approval for Lend Lease’s 37-storey One The Elephant residential block, which is expected to deliver 284 new homes in 2016.
"We've already surpassed one degree of global warming," said Kristen Buida, manager of the London Climate Change Partnership.