Planning permission has been granted to built a new health centre, shops and nearly 200 homes on a patch of "underused" land in Earlsfield.
The development will take place in and around the council-owned land at Garratt Lane and is part of a larger regeneration scheme for the area.
Of the 193 homes to be built, 40 per cent have been earmarked as 'affordable' and ten per cent will offer wheelchair access.
Planning chairman, councillor Guy Humphries said: “Part of this land is currently occupied by a number of unattractive 1950s and 60s council-owned buildings and their replacement with smart, high quality homes will not only help revitalise the area, but also improve the visual amenity of these streets by restoring parts of the historic street pattern.
“This scheme represents another key element in the council’s plans to revitalise and improve this part of Garratt Lane.
“There has already been substantial investment here with the addition of a new primary school and nursery.
"We are now ready to move onto the next stage of this neighbourhood regeneration scheme by providing a new and better state-of-the-art health centre alongside new homes – including a significant proportion of affordable homes.”
The delivery of the affordable housing is being supported by a grant from the council of more than £1million to the housing association selected, Octavia, for the development.
These new homes will be built on council-owned ‘brownfield’ sites in Oakshaw Road, Atheldene Road, Wilna Road, Winfrith Road and Waverton Road.
The scheme will also see a GP-led NHS community health centre, homes and shops built on the vacant land at the corner of Swaffield Road and Garratt Lane.
Part of the regeneration scheme has already seen the replacement of "vacant and obsolete" council-owned buildings with a 420 pupil primary school – Floreat Academy – plus a nursery for 50 kids.