Mayor of London Boris Johnson this week decided to grant planning permission to developer Berkeley Homes (Capital) for its 995-home City Forum proposals on City Road in London's EC1.

The scheme includes the construction of two towers reaching 36 and 42 storeys on a 1.9 hectare site currently occupied by office buildings which will be demolished as part of the plans. As well as the homes, of which 30% will be affordable, the buildings will comprise a 190-bedroom hotel, office space and shops.

The Mayor called in the proposals in December after the London Borough of Islington had refused the application.

“London is enjoying an unprecedented population boom and by 2030 will become the first city in Europe to be home to 10 million people," said Johnson in a statement. "Building new homes and creating more jobs is absolutely crucial so that we can ensure this growth is sustainable.”

Berkeley Homes (Capital) divisional managing director Justin Tibaldi welcomed the decision. "We are delighted to have been given planning permission by the Mayor and will aim to get on site this summer. We want to bring real benefits to the area and to London as a whole, not least through a major investment in high quality affordable housing," he said.