Plans to build 767 new homes on a vacant site next to the Thames have been given the green light by Southwark Council.
St James Group proposals for the Chambers Wharf development were originally approved in 2010, but progress had been hampered by changes to the ownership of part of the site and a reduction in government funding towards the scheme.
Southwark said the latest approval, which follows the developer's new partnership with housing association Peabody Trust, would result in 180 new affordable homes for the development, taking the total proportion of affordable homes provided to 31 per cent.
Councillor Fiona Colley, Southwark’s cabinet member for regeneration, said she was “really relieved” that the scheme was going ahead despite a £20 million reduction in funding from the Homes and Communities Agency.
“We have been able to protect the rent levels of the large family homes at rates similar to council rents, and limit the rents of the one- and two-bed flats to 65 per cent of market levels - not the 80 per cent of market rents that the government now claims can be considered 'affordable’,” she said.
Thames Water has acquired the northern part of the Chambers Wharf site, which is now not expected to be developed for some time. Work on the southern part of the site, the subject of the planning approval, can start later this month.
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched