Lend Lease will now work with the council to develop detailed designs for the buildings and public space and provide development, construction and investment management on the project.

The council also gave the go-ahead for the huge Heygate Estate to be demolished.

By 2025, the scheme aims to deliver approximately 2,500 new homes with a minimum of 25 per cent affordable homes, as well as new shops, restaurants and community facilities and at least 4.53 hectares of new publicly accessible space comprising parks, squares, streets and gardens.

Elephant & Castle redevelopment released by Lend Lease

Heygate Estate can now be demolished after council approval

The masterplan envisages significant improvements and investment in public transport, along with new pedestrian and cycle paths that will create one of the best connected locations in London as well as creating 6,000 new jobs during construction.

This latest approval follows the recent planning permission granted for One The Elephant in November – a 37 storey residential development of 284 homes.

Steve McCann, Lend Lease group chief executive officer and managing director said: “The regeneration of Elephant & Castle is now underway.

“The approval of our masterplan sets in motion our long-term plans and our commitment to the region. We are very pleased to be working with Southwark Council in the development of this landmark project which further strengthens Lend Lease’s position in the UK market.”