Work has begun on a Rotherhithe development providing 100 per cent affordable housing.
62 affordable homes, including seven social rent flats, seven social rent duplexes and 48 shared-ownership flats, are set for completion in summer 2025.
The Peabody housing development on Lower Road is where St Olave’s Hospital used to be – an infirmary and workhouse dating back to 1742.
Most of the hospital was demolished in the 1990s to make way for the Ann Moss Way estate although its gatehouse still remains.
Last month Rotherhithe Ward Councillor Kath Whittam, who visited the site for its groundbreaking event marking the start of construction, said the new homes were “fabulous”.
“As a ward councillor I am very glad to see the site go ahead, and it is particularly nice when the scheme is 100 per cent affordable,” she said.
“I’d like to thank Peabody and Thomas Sinden for putting such a strong scheme together, which will give our residents the chance of a fabulous new home.”
The £18 million project, delivered by construction contractor Thomas Sinden, will have balconies or terraces attached to every flat.
There will also be a communal roof terrace, new outdoor areas and play spaces for families.
Local charity Bermondsey Community Kitchen (BCK) also attended the groundbreaking event having accepted a £1,000 donation from Thomas Sinden.
BCK, which helps teens and young adults get City and Guilds Professional Cookery qualifications, will use the money to help support local volunteers.
Angela Wood, Deputy Executive Director of Development at Peabody, said: “The positive impact of new affordable homes cannot be underestimated.
“Peabody already works closely with many communities in Southwark, and we’re pleased to have started delivering more new homes for people locally.”
The new development will mean the demolition of a derelict single-storey nursing home and portacabins.
The site used to host St Olave’s Hospital, a Georgian hospital built in 1742 and famously the birthplace of legendary actor Sir Michael Caine.