Councillors have given the go ahead for the redevelopment which was first presented to the authority last year.
The site will see the erection of eight buildings ranging from 6 to 21 storeys high.
The scheme will also include new public open spaces, private residential amenity space, as well as car and cycle parking spaces.
Chair of Sutton Council’s Planning Committee, Councillor Richard Clifton, said:
“We know how many Sutton residents and people moving to our borough want to live in quality and affordable housing. The B&Q site is a vital part of our plans to meet this need and build more homes in Sutton town centre where public transport connections are good.
“It’s great news that this planning application has been agreed. This is just the latest stage of the Council’s ambitious plans to regenerate Sutton town centre and make it vibrant and sustainable. This includes building new homes, including affordable homes.
“It is clear from the number of comments the Council received on the planning application that there is a high level of public interest in the plans for the B&Q site in Sutton town centre. As we move to the next exciting stage, we will keep residents and businesses informed about the next steps.”
