Granville Mews will provide six townhouses benefitting from a communal courtyard and spacious three-bed, five-person accommodation.
The developer believes smaller infill sites in the capital represent an opportunity to increase the provision of family housing, with plans for more later this year.
This scheme will replace a branch of Buildbase on a corner plot.
Sheffield-based Axis Architecture has designed the project, with a planning application submitted yesterday to Barnet Council.
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Projection image of Granville Mews in Finchley, north London
Tom Slingsby, CEO at Southern Grove, said: “This is an exciting pilot project for us.
“Smaller parcels of land are unappealing to most big developers because they prefer the simplicity of single, large schemes that offer an easily defined economy of scale.
“We believe they offer valuable opportunities to regenerate residential areas and increase housing stock.
“London is littered with infill sites and, if you add them all together, they represent a huge bank of land that is either undeveloped or in need of regeneration.
“They represent a largely untapped opportunity to provide substantial amounts of new housing in London and we will be exploring how we can expand our use of them.”