Four high-rise tower blocks making up the Ledbury Estate are set to undergo a complete refurbishment, which will include required strengthening works, new lifts, windows, roofs and lighting.
Southwark Council's cabinet members recommended on 30 October that the Ledbury Towers be refurbished rather than demolished, and new homes built on land next to them – at least half of which will be council homes – to help finance the refurbishment costs.
Stephanie Cryan, cabinet member for housing, said: "We know it has been a difficult time for many people but I feel we are at a point where we can start moving forward and get this work done to fix the homes in the four tower blocks, and use this opportunity to build new, family homes on the estate to help meet costs and help local families living in overcrowded conditions.
"I want to extend my thanks to the residents in the tower blocks and the wider estate, members of the Resident Project Team and the Ledbury Tenants and Residents Association for their invaluable help and commitment to the future of the tower blocks and very much hope that we continue to work together as the works progress to ensure the right outcomes for the Ledbury community."
The rest of the costs would be met from the council's ring-fenced housing fund.
The refurbishment would be done in phases allowing those residents still living in the towers to move into one of the empty homes temporarily while their blocks are completed.
Just over 150 tenants have already moved out of the Towers, with the choice to return if they wish once the refurbishments are completed.
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched