Bouygues UK has been picked by Southwark Council to deliver around 150 affordable homes for key workers in the borough.
The scheme is set to provide homes for social workers, teachers, fire-fighters, police and NHS clinical staff.
The council said the aim is to help these workers live close to their jobs, cut travel times and improve their work-life balance.
Homes will be available to key workers with a combined household salary of £26,000 to £67,000 per year.
Rents are planned to match London Living Rent levels, calculated by ward.
The site is next to the Arnold Estate in Zone 1, close to London Bridge and Bermondsey stations.
This is the first project under the council’s new Affordable Housing Planning Guidance.
Councillor Helen Dennis, cabinet member for new homes and sustainable development at Southwark Council, said: “Key workers are the backbone of any community and ensuring that their work is recognised and their lives made easier is the least we can do to repay the efforts they make every day.
“I’m really excited and proud that we’re going to be delivering around 150 homes for keyworkers in partnership with Bouygues UK.
“Creating affordable housing in London is always a challenge but Southwark Council is dedicated to meeting this challenge head-on as part of our 2030 strategy.”
Dennis added: “The new homes will contribute positively to recruitment and retention of key workers in our borough, shaping a positive future and making lives better.”
Subject to planning, construction is due to start in mid-2026 and finish in 2029.
Oliver Campbell, managing director of the development arm at Bouygues UK, said: “We are thrilled to have been selected by Southwark Council as the development partner for this landmark scheme in SE1.
“Building on our successful collaboration on several projects, including the Tustin Estate scheme where we are delivering nearly 700 new homes, we value our strong partnership with the council.
“Providing affordable housing for keyworkers is a vital step in supporting those who are indispensable to the wellbeing of the community.”
Campbell added: “This project represents an exciting opportunity to further our collaboration and make a lasting contribution to the future of Southwark, and we eagerly anticipate bringing this vision to fruition.
“Construction will progress at pace, ensuring that these much-needed facilities are delivered promptly and to the highest standards.”
