Southwark Council has granted planning permission for the Aylesbury estate regeneration development by Notting Hill Housing.
The scheme aims to develop 3,500 homes for the area along with community facilities and open spaces.
Two separate planning applications were approved.
The first development site will build 830 properties, including specialist housing for older people and homes for people with learning disabilities. Plans also include a community facility and extensive new public open space including two parks.
2,745 homes will be built during phase two, three and four of the second development site. Office space will also be created along with retail units, a new public square with a health centre and open public spaces such as parks and playgrounds.
Kate Davies, Chief Executive of Notting Hill Housing, said: "Everybody at Notting Hill housing is thrilled that we have been granted planning permission for the Aylesbury estate project."
Work is due to begin in Autumn this year.
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