More than 1,000 homes are to be built on the site of Holloway prison which has been sold to a housing association.
The former women’s jail in north London – where murderers Myra Hindley and Rose West were held – has been bought by Peabody in a £81.5m deal.
Plans for the 10-acre site also include a women’s centre, shops, green spaces and play areas.
Peabody said around 600 of the new properties built in partnership with housebuilder London Square would be “genuinely affordable” homes.
City Hall has lent the housing association £41.6m towards the deal with the Ministry of Justice.
Mayor of London Sadiq Khan and Labour leader Jeremy Corbyn, in whose constituency the prison is based, tweeted about the deal.
Mr Corybn wrote: “For too long private developers had free rein to buy up public land and build properties that are completely unaffordable for the local community.
“But under a Labour Mayor and Labour council, the former Holloway Prison site will include 600 social and genuinely affordable homes.”
Prisons Minister Rory Stewart said: “The sale of Holloway will help drive forward our commitment to replace ageing prisons with modern, purpose-built establishments.
“I am determined to see this money reinvested to improve rehabilitation and ultimately reduce reoffending.
“We have worked closely with the local authority and others to ensure the amount of affordable housing on the site meets local needs, and I am pleased we have achieved this aim while giving good value to taxpayers.”
(c) Sky News 2019: Holloway prison sold in £81.5m deal to build 1,000 homes