The project for developers Bhuchar McCausland will create 65 new homes on the site, which is part of a major regeneration area.
The flats will be housed in four blocks arranged around a courtyard and will range in size from one- to three-bedroom mixed-tenure units. There are also plans for a handful of double-height commercial units at ground-floor level, which will serve as 'incubator' spaces for creative industries.
A spokeswoman for the practice said: 'The site, in its present state, is attracting fly tippers and graffiti, causing a negative effect on the local environment.
'[However] Lambeth were incredibly efficient in pushing the scheme through committee - it only took nine weeks.'
With dark brick, metal cladding and white render, the project is due to start on site next spring.
Meanwhile, a few miles south of the Union Road scheme in Thornton Heath, Croydon, the practice has also won the green light for a new £6 million, mixed-use development.
The 51-flat scheme, which will boast 575m 2of leisure space on the ground floor, will be built on the site of a soon-to-be demolished Gala Bingo Hall on London Road.