Developer Delancey’s application proposes 978 homes, plus 18,234 square metres of retail space, 2,800 square metres of business space and 5,743 of leisure uses. Some 35 per cent of the homes would be affordable.
In January, the London Borough of Southwark’s planning committee narrowly voted down a motion to approve the application. A final decision on the application was deferred, opening the way for the developer to negotiate further with the council.
In July, the council voted to approve the scheme, subject to the completion of a section 106 agreement and consideration by the mayor of London. Council planners had concluded that a cut in the development’s overall affordable housing provision would be outweighed by factors including an increase in its proposed level of social rented units.
Planners also advised that mitigation proposals such as the provision of affordable retail units for displaced tenants would help make the development acceptable.
Now, the mayor of London has said he will not call in the application.
A spokesman for the mayor said: "This development will include nearly 1,000 new homes for rent – of which 35 per cent will be at social rent or other genuinely affordable levels – as well as community space, leisure facilities, offices, an enhanced college campus, and improvements to the nearby Underground station.
"By working with the developer and the council, City Hall have secured an unprecedented level of support for traders affected, with their rents now capped below market rates for 15 years, and have got the level of rents in the affordable homes down even further.
"City Hall have used the planning powers available to their fullest extent to make sure these plans represent a good deal for the local area, and having considered all the evidence available, have decided to approve this application."
Last month, Southwark Council refused plans for a 499-home high-density mixed-use redevelopment of a business park, gainst a recommendation for approval from planners.