Long-running plans for 20 new homes by Mitcham Common were approved by councillors.
There has been opposition to proposals for the former Windmill Trading Estate in Commonside East because of what residents claim are existing traffic congestion and parking problems.
Planning permission was granted for a three and four storey building to provide two one bedroom flats, nine two bedroom flats, four three bedroom flats and four three bedroom houses as well as car parking and recycling facilities at The Meadows.
Speaking at the meeting of Merton Council’s planning committee, Councillor Martin Whelton said: "This is an excessive and inappropriate development for this area."
Plans were approved on Thursday, August 21.