The regeneration project for the Pembury Estate will include 50% affordable housing among 280 homes, shops and community facilities.
The plans for Pembury Circus will complete a programme of regeneration that began when Peabody acquired Pembury Estate from Hackney Council in March 2000.
Peabody has invested more than £75m improving the estate.
Bellway Homes was selected as Peabody’s preferred developer after a process involving a resident design panel consisting of nominated members from the residents association.
Ian Gorst, land director for Bellway Homes, said: “We are delighted that the plans for the regeneration of Pembury Circus have been approved and we look forward to delivering the investment in new homes and facilities that are much needed in the area.”