A £5.5bn plan to redevelop Battersea Power Station along with the surrounding area has been approved by Wandsworth Council - the proposal will generate 3,400 homes and 15,000 jobs.

A pedestrian high street and town square are part of the masterplan, with space set aside for new shops, restaurants, bars, cafes, offices, a hotel, cinema and other community uses.

Planning application committee chairman Cllr Nick Cuff said:

"This scheme would restore one of London's most iconic buildings and create thousands of new jobs and homes.

"The two Northern Line stations will spur on the regeneration of Nine Elms and bring a huge economic windfall to this part of south London. There is still a great deal of work to be done but this is an important step forward and will give the area's other major investors the confidence to press ahead with their plans."

Before work begins Treasury Holdings will sign a legal agreement pledging more than £211m to improving local infrastructure and community services. Around £203m of this would go towards extending the Northern Line.

This is excellent news for the nine elms area, with estate agents predicting an influx of additional investment from the private sector into property and commercial premises.  Rents in the area are likely to remain strong and property prices over the long term will be sound.