Southwark's planning committee has unanimously approved plans by Taylor Wimpey to build 47 new homes on the site of a small industrial estate on Rushworth Street.
Taylor Wimpey plans to demolish Friars Court, a small complex of light industrial units on the west side of Rushworth Street, and build 47 new homes.
The scheme will also include commercial space at ground level.
"It is an attractive scheme that will improve this part of Rushworth Street," planning agent Rory Joyce told councillors on Tuesday night.
Architect Trevor Morriss of SPPARC explained that the design "draws influence from the industrial character of the area".
The six-storey development will include 12 affordable homes, of which eight will be at social rent.