The new homes will be provided within a 25 storey building on a disused site on Mapleton Crescent, Wandsworth Town centre.
The development will also provide 23 properties for sale on the open market, as well as indoor and outdoor communal spaces where all of the building’s residents can relax and socialise.
It has been designed by architects Metropolitan Workshop and will be clad in ceramic green tiles.
Each of the 63 one-bedroom affordable homes is designed to make the best use of space, including floor-to-ceiling windows, under floor heating and built-in storage.
Local buyers will be offered the chance to purchase the properties outright with a discount of at least 20 per cent on the open market value, with many of the flats offered with even higher discounts.
Priority will go to Wandsworth residents who can’t afford local house prices.
Planning applications chairman Sarah McDermott said: “These compact starter homes are a superb innovation and will provide local people with a new affordable housing option in the heart of Wandsworth Town centre. I’m sure they will be a popular choice with local residents who can’t afford to buy on the open market and we hope to see more schemes like this developed in the years ahead.
“The building’s design is equally impressive, particularly the green ceramic cladding system which will be another first for Wandsworth. The emphasis on creating such high quality communal areas is another welcome innovation.”