The scheme will see a 1930s police station demolished to make way for the scheme, which is being developed by Barratt East London, in Berwick Street in the heart of Soho.
The site, which has lain vacant for almost 13 years after it was decommissioned and sold, has been kick-started after unconditional contracts were signed between the Greater London Authority and developer Barratt Homes.
The Mayor of London, Boris Johnson, said: “After years of lying dormant it is fantastic news that this site will be welcoming in the diggers and bringing new homes to the heart of historic Soho. The project is a great example of how vacant public land can be released to deliver more housing for Londoners, as well as giving a boost to the economy and to jobs in the construction industry.”
Jeffrey Adams, Group Chief Executive of United House, said: “We are creating homes in the very heart of London, where there has always been a strong, local community and an exciting, diverse buzz that brings visitors from all over the world.
“United House has a great track record with developments in central London and we are looking forward to working with Barratt Homes and all the partners to deliver the scheme.”