Work has started on the construction of new council homes on the Setchell Estate in Willow Walk, Bermondsey.
The homes – part-funded to the tune of £5 million by the developers of the luxury Neo Bankside development next to Tate Modern – are part of Southwark's programme of 11,000 new council homes over the next three decades.
The Willow Walk scheme includes 21 homes for social rent as well as 54 units of short-stay accommodation.
"This scheme, the first of an immense programme of construction, will not only create excellent, high quality council homes for those most in need, it will boost employment and contribute to reinvigorating London's economy through house building," said Cllr Fiona Colley, cabinet member for regeneration.
"Southwark Council is a leading authority in regeneration and this is a tangible, proactive step towards fulfilling the promises made to the people of this borough – to ensure they see the full benefits and opportunities of regeneration with new homes, jobs and a better living environment.
"It is exciting to see the first significant numbers of council homes being built to be managed by Southwark Council for many years."
A planning application for a further development of council homes in Long Lane is currently awaiting decision.