A £20 million grant has been awarded to Lewisham Council by the Government to build new homes in Catford and Lewisham town centres.

The bumper grant was awarded by the Housing Infrastructure Fund last week.

Lewisham Council said it will use the fund to move the South Circular in Catford, which will provide more land for housing and ‘transform’ the town centre with new homes, jobs and open spaces.

Sir Steve Bullock, Mayor of Lewisham, said: “We are building 500 new council homes and 2,000 new affordable homes in Lewisham to tackle London’s housing crisis and an extra £20million funding will make a big difference to our work.”

Catford's Masterplan was updated last month and will be put out to public consultation before it is approved by the Mayor and cabinet. It is not expected to be finalised until 2020.

The plans include increased investment into the High Street and Broadway Theatre, which has already welcomed award-winning cocktail venue, Little Nan's Bar.

The 'major changes' to the South Circular were agreed by Lewisham Council in July in a move with Cllr Bullock described at the time as a decision which 'ends 50 years of uncertainty over the route of the South Circular road and the benefits will be felt for generations'.

The Mayor said the 'simplified road layout will make it easier for pedestrians, cyclists and drivers to travel by removing the gyratory'.

The A21 and the A205 would be directly affected by the works, which would also create wider pavements, 13 new road crossings and major improvements to Catford town centre.