Notting Hill Genesis have been given the green light to build a “100 per cent” affordable scheme on Wellesley Road.
The new 26-storey tower block will be delivered on the site of Cambridge House, currently a four-storey office block that will be demolished to make way for the new development.
Work is due to be complete by 2020, bringing 92 new homes to the town centre.
A Notting Hill Genesis spokesperson said: “Our plans for Cambridge House will provide 100 per cent affordable housing through shared ownership with an expected completion date of 2020.
“The site benefits from excellent transport links into central London, which we will enhance by working with TfL to improve pedestrian access around the existing tram stop.”
Matthew Cornwall-Jones, technical and planning director at Notting Hill Genesis said: “With [the new] Cambridge House we sought to deliver a high quality and carefully considered scheme which will positively contribute to the ongoing rejuvenation of Croydon and provides contemporary homes for the area.”