Funds totalling £2.6 million provided by developers building homes in SE1 have been allocated to the construction of 84 new homes for social rent at Stead Street in Walworth.
The allocation of the cash to Guinness Trust's Stead Street car park development in SE17 was approved unanimously by Southwark Council's planning committee last week.
The £2.6 million includes £1.2 million linked to the building of the Strata SE1 tower at Elephant & Castle and £1 million received from Oakmayne in connection with the Tribeca Square development at the junction of New Kent Road and Elephant Road.
The Stead Street scheme was one of the so-called 'early housing' sites originally intended to accommodate residents of the Heygate Estate.
”This council has a crystal-clear commitment to genuinely affordable, high-quality new housing," said council leader Peter John.
"I look forward to demonstrating that promise as construction starts on these homes.”
To date, through the Heygate rehousing programme, the council and its partners say they have built 428 affordable homes.
However, earlier this year the council admitted that just 15 former Heygate Estate tenants had moved into those housing association-developed schemes, with most having opted to remain council tenants and moved to a variety of locations around the borough.
The Stead Street development will include 140 homes including 56 intended for private sale and 84 social rented homes. The funding package includes £5.5 million from the Greater London Authority and £1 million internal subsidy from Guinness Trust.
For the latest local news and events direct to your inbox every Monday, you need our weekly email newsletter SE1 Direct.
7,000+ locals read it every week. Can you afford to miss out?
Read the latest issue before signing up