Lend Lease plans to start selling the homes in the Phase One development in April and start construction later this year.

Lend Lease’s managing director of residential development in the UK, Mark Dickinson, said: “Together with the recent outline planning approval for the regeneration of the Heygate Estate and the successful sales launch of our landmark One The Elephant development, this planning approval has enabled our commitment to the transformation of Elephant & Castle to gather real momentum.

“We have a 15-year development plan for the area and we’re committed to creating a healthy and thriving urban quarter that enriches and integrates with the surrounding, well-established neighbourhood.

“We are also making a financial contribution towards a community project bank that will deliver public realm improvements to Balfour Street such as tree planting, traffic calming and pavement widening.

Cllr Fiona Colley, Southwark Council’s cabinet member for regeneration, said: “Last month we saw the Heygate masterplan given the go-ahead which was a major milestone.

“This week’s decision is just as important as it means we, with our development partners, can start to bring those plans to life.

“The regeneration of Elephant & Castle is a unique and world-beating project that will deliver almost 5,000 new homes in the heart of the capital, 6,000 construction jobs, a brand new leisure centre, major transport and infrastructure improvements as well as a major new park for local residents. We’re delighted that the latest plans have been approved.”

Designed by award winning architects de Rijke Marsh Morgan, the new homes will meet Level 4 of the Code for Sustainable Homes and requirements of the London Plan.