Planning permission has been granted by the Royal Borough of Greenwich Planning Committee for 506 new homes to be built in the southern quarter of Greenwich Peninsula and which is the first phase of a £5bn master-plan.

The Peninsula Riverside scheme is being developed by Quintain through the GPRL joint venture and will eventually include up to 2,963 homes, with this first phase creating 506 homes.

Max James, Chief Executive of Quintain, said: "We are delighted that the Royal Borough of Greenwich has granted detailed planning consent for 506 homes at Peninsula Riverside. This decision paves the way for construction work to start on site this summer delivering new jobs and homes; a positive step in transforming the vision for Greenwich Peninsula into reality."

The approval will enable construction of the first homes to begin in summer 2013, with completion expected in early 2015. Half the new homes (283) will be designated as affordable housing for the benefit of the local community and key workers.

Richard Blakeway, Deputy Mayor for Housing, Land and Property, said: "Greenwich Peninsula, with its potential to deliver thousands of homes, including a large proportion of affordable housing, and jobs, is exactly the kind of development we want to see moving forward in London helping to boost the economy and accelerate the number of homes being built on GLA public land."

The 190 acre Greenwich Peninsula scheme has outline consent for 14m sqft of residentially-led mixed-use development along 1.6 miles of river frontage, with the homes spread across four new 'quarters', centred around a commercial district and 40 acre park.