The masterplan application, submitted by supermarket chain Morrisons and developer Barratt London, sought consent for the demolition of the existing supermarket off Chalk Farm Road and its replacement with four new buildings of up to 14 storeys accommodating up to 573 homes and 39,576 square metres of commercial floorspace, including office space and flexible retail space.
389 of the homes would be for market sale and 184 would be affordable.
According to a planning report, the scheme’s proposed 39 per cent provision of affordable housing (by habitable room) was supported by planners "as a starting point".
However, it said, following any resolution to grant consent, "the applicant must work with the mayor, local planning authorities and registered providers to ensure that the provision of affordable housing is maximised from all sources and fully investigate the provision of grant funding (and any other available public subsidy)" to increase this level.
Planners said that their overall assessment "demonstrates that the development would lead to some harm, mainly to heritage assets (which is to be accorded considerable importance and weight) and to local amenity".
However, they said that the list of "benefits arising from the development compared to the existing site is long and substantial".
These included the application’s affordable housing offer and "comprehensive approach to the site offering genuinely mixed use development at an appropriate density in a sustainable location".
Planners concluded that any harms were "outweighed by the public benefits of the development, which responds to the many challenges and constraints of the site with a new urban neighbourhood which would provide a high quality environment for all those who live, work and visit the place".
The application will now be referred to the mayor of London.