The decision ends nearly a decade of planning and delays after the developer received planning in 2016 but then went back to the drawing board arguing the affordable housing requirements made the scheme uneconomic.
Now Essential Living is back after losing its fight at the start of the year to revise the 100 Avenue Road scheme.
It now plans to start the originally approved building despite construction costs rising to above £100m.
Wates was originally lined up to deliver the project, designed by Grid Architects, which also includes a low-rise building above Swiss Cottage tube, as well as ground-level retail and leisure space.
Construction is expected to begin by mid 2023 and complete by 2025.
The project will deliver the 184 homes including 54 affordable homes and the new community home for the Winch Youth Centre.
Essential’s development manager Camilla Lesser said: “Although a normal commercial return will still not be achievable in the short to medium term at 100 Avenue Road, we have decided to press ahead with construction of the approved scheme.”
She added:”We remain fully committed to the long-term future of the site and making a positive and sustainable contribution to local life in Swiss Cottage.”