The authority has launched a search for a housing developer who it can partner with on the project.
The properties will be delivered across six different sites in the borough.
Lambeth has more than 40,000 people on its social housing waiting list.
Cllr Danny Adilypour, the Council’s Deputy Leader and Cabinet member for Housing, Investment and New Homes, said: “Since the launch of our New Homes Programme in March last year, we have made great strides in unlocking many housing projects in the borough to enable us to deliver more affordable housing for our residents.
“But as the temporary accommodation crisis continues, with 5,000 households in often sub-standard temporary accommodation and more than 40,000 people on Lambeth’s housing waiting list, coupled with difficult financial circumstances, we need to act more urgently through the most effective way to help us deliver new housing.
“Alongside working with the Government to find solutions to our housing crisis, we know that the right partnership with an industry expert will help us deliver more new affordable homes at pace which we have started implementing on other projects already to accelerate delivery.
“As we begin the search for a partner to deliver the New Homes 6, I look forward to working with our residents and the right partner to bring forward this significant project that will not only bring forward much-needed high quality homes but also improve so many of our Lambeth neighbourhoods in the future.”
