Housing association Peabody has acquired the former Holloway Prison site from the Ministry of Justice, with plans to collaborate with developer London Square to construct a 1,000-unit residential scheme — designed by AHMM — which will be 60% affordable. The site will also comprise play areas, local shops, green spaces and a women’s centre.

Subject to planning consent, work should begin on the site by 2022, with the first affordable homes completed in 2026.

The deal has been funded with a £42 million loan from the Mayor of London’s Land Fund, which Peabody will pay back in full.

Calling the development a ”once-in-a-generation opportunity to deliver a considerable amount of much-needed, genuinely affordable housing for local people,” Islington Council had put measures in place to ensure that any development of the old prison site would provide at least 50% affordable housing, which Peabody is set to deliver comfortably.

Brendan Sarsfield, chief executive of Peabody said: “We are committed to working with LB Islington and the GLA to deliver an exceptional new housing scheme on this historic site. We are pleased to confirm we will deliver 60% level of genuinely-affordable homes integrating existing Islington communities with a new Peabody estate. As well as providing new homes we will also ensure social infrastructure and placemaking are at the heart of our proposals. We are pleased to be working with London Square which is a continuation of our longer-term relationship across a number of sites in London.”

Adam Lawrence, chief executive of London Square, added: “We are honoured to be working with Peabody and the GLA to deliver this important new scheme for the capital. We have a strong track record of delivering high quality, sustainable and mixed communities in London and are delighted to be part of this high-quality team.”

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