The project for Southwark Council involves the demolition of existing temporary residential accommodation to be replaced with a four-storey building fronting Willow Walk and Alscot Way.

The building will provide temporary accommodation in 54 bedrooms with shared kitchen and communal facilities. Another new four-storey building on Setchell Road will incorporate 21 council housing units.

Southwark Council has committed to building 11,000 brand new council homes over the next 30 years.

The Willow Walk development is the first to get underway as part of this ambitious plan.

The council has so far named nine sites where it plans to build new homes for rent using cash provided in lieu of on-site affordable housing by developers of prime riverside sites such as King’s Reach Tower, Neo Bankside and One Tower Bridge.

Councillor Fiona Colley, Southwark Council’s cabinet member for regeneration, said: “This scheme, the first of an immense programme of construction, will not only create excellent, high quality council homes for those most in need, it will boost employment and contribute to reinvigorating London’s economy through house building.

Balfour Beatty’s Neil Patterson said: “We are delighted to have been given the opportunity, at the start of this ambitious development programme, to work with Southwark Council to provide new quality homes for residents in the Borough”.

Construction is expected to be complete by spring 2015.