The 50:50 partnership will provide 329 mixed-tenure homes, 42% of which will be affordable.

Construction is set to begin early this year and is expected to complete in 2027. 

South Thamesmead’s second phase follows the completion of neighbouring phase one in late 2022.

The initial phase includes 534 new homes — of which 55% are affordable — a new public square, library with community facilities, commercial space for shops, services and cafes, and outstanding shared spaces.

Peabody will continue to own the site, manage homes for rent and shared ownership, and look after private blocks. 

Some 181 South Thamesmead households have already moved into phase one homes, while 59 homes in phase two have been earmarked for people already living in the community.

•   The Finance Professional Show 2023: The Video
•   Great Places CEO to step down
•   HG Construction named as contractor on 706-bed PBSA scheme

David Llewellyn, project director for south Thamesmead at Peabody, said: “We’ve set out an ambitious masterplan for south Thamesmead, as part of our wider work to improve neighbourhoods and create new opportunities across the town.

“Local people will continue to be at the heart of the changes across the town, and we hope they will feel a growing sense of pride and belonging in Thamesmead as this work continues.

“Lovell Partnerships are urban regeneration experts with decades of experience, and we look forward to making the most of this as we take forward this next phase of development.”

Mary Parsons, director for regeneration and partnerships director at Lovell Partnerships said: “Forming this joint venture with Peabody for south Thamesmead is hugely important to Lovell — not only to be part of such an exciting and ambitious regeneration scheme, but to have the opportunity to work with a partner like Peabody who have such an outstanding track record in community led placemaking and regeneration.  

“Working in partnership to deliver complex regeneration and genuinely mixed tenure neighbourhoods is in Lovell Partnerships’ DNA and our London team can’t wait to get started.”