Transport for London and the London Development Agency have agreed to give a £1.8m boost to the regeneration of Elephant & Castle in the London borough of Southwark

At a City Hall meeting on Monday, the bodies said they would fund the transformation of the area’s southern roundabout.

Southwark council and developer Lend Lease said they expect to finalise an agreement for a residential scheme on the old Heygate estate by the summer, when TfL completes a study into long-term transport needs.

Boris Johnson, the London mayor, said: “Elephant and Castle sorely needs a massive regenerative boost and today’s meeting has reassured me that Southwark council, Lend Lease and TfL are working flat-out to make this vital project a reality.”