The Mayor of London, Sadiq Khan, has approved plans for 153 affordable modular homes in what will be one of the tallest schemes of its kind.
The development at Addiscombe Grove in Croydon will offer over 70% of the homes as affordable for first-time buyers.
Developer Pocket Living has agreed in principle to make the remaining homes available for shared ownership.
Last year, Pocket struck a deal with the mayor for £25m of City Hall funding to support 1,059 new Pocket homes, a third of which are expected to be built off-site in a factory. This funding has helped Pocket build more high-density flats on brownfield sites.
Sadiq Khan, said: “Tackling London’s housing crisis requires bold new approaches. We know turning things round will take time, but off-site construction is an innovative way to speed up building the affordable homes our city needs.
“I invested in Pocket Living to help them build genuinely affordable homes that are sold to local people first.”
Marc Vlessing, CEO of Pocket Living, said: “We’re delighted that the mayor has approved our exciting first scheme in Croydon.
“We are aiming to use modular construction to deliver homes faster and increase the genuinely affordable housing provided from 73% to 100%.
“Once again, the mayor has shown his commitment to tackling the housing crisis through backing innovative solutions that deliver significant levels of affordable homes.
“We are proud to share City Hall’s vision for housing in the capital. A vision that we can help realise thanks to the recent £25m investment from the Mayor that will see over a thousand genuinely affordable homes for Londoners started within the next three years.”
The homes being delivered by Pocket in this scheme for discounted market sale are affordable with a 5% deposit to households with a salary of £39,000, and they can only be sold to residents and workers in the borough.