The Mayor of London has approved a controversial £800million plan for a huge new housing and offices development on a derelict central railway goodsyard.

Sadiq Khan gave the green light to proposals for 500 homes and 1.4 million sq ft of office and workspace at Bishopsgate Goodsyard on the edge of Shoreditch.

The plans also include a high line-style park with connected gardens, terraces and walkways sitting on top of the restored railway arches.

The 10 acre site is one of inner London’s last remaining strategic brownfield sites and has sat largely derelict since the 1960s.

Variations of a planned housing scheme for the land have been in discussion for 10 years.

Hackney Council objected to the scheme, jointly submitted by developers Hammerson and Ballymore, arguing that the “extent of design and heritage concerns were considerable”.

Meanwhile, Tower Hamlets councillors said there were not enough homes in the plans and the low number of family-sized affordable flats was too low at 29. The Victorian Society was also among those against the proposals.

Concerns had previously been raised by campaigners who felt that the tower blocks, rising to as many as 29 storeys, were too high.

However, Mr Khan told the GLA planning committee that “every opportunity must be taken” to increase office space and homes, particularly in inner London.

He added: “The benefits of this development outweigh the negative.”

It was given the green light last week and Robin Dobson, Hammerson’s director of UK development, said: “The mayor’s decision is a huge vote of confidence in central London after a challenging year. Our designs make the very most of a highly constrained site and will provide a huge range of benefits.

“These include one of the largest ever provisions of affordable workspace in London, which will help the local area and London as a whole continue to thrive long into the future.

“We listened carefully to feedback on our original proposal and after extensive consultation with Hackney and Tower Hamlets councils, local people and businesses and the Greater London Authority, our proposal now provides for a balanced, mixed-use scheme that will create a new community in the heart of Shoreditch.”