Three new council houses will be built in Dulwich’s Underhill Road after gaining planning approval.
Southwark Council says the four-bedroom houses are the first from its pledge to build 11,000 new council homes that are earmarked for Dulwich.
The terraced houses will replace two prefab bungalows.
Councillor Leo Pollak, the cabinet member responsible for new council homes said it was the “first of many” for the area.
“In this development we are replacing two small pre-fabricated buildings that are decades past their life span and replacing them with light, spacious family homes that will not only help house families in the area living in over-crowded conditions, but will free up many vacated homes that can be made available for people on the housing list.”
Although Southwark’s construction campaign is one of the most ambitious in the country, it will struggle to keep apace with the number of homes sold off under right-to-buy.
As the News has reported, the council has been stuck spending £12.5 million a year renting back former housing stock to use as temporary accommodation.
More than 1,300 homes have moved into private hands since 2012.