An abandoned house in Tooting has been transformed into a giant piece of artwork thanks to a mystery street artist.

The house, in Burntwood Lane, is now decorated with human figurines, colourful flowers and a sign reading “Homeless 9,500, Empty Homes 7,600”.

Residents have praised the intriguing work, which has been interpreted as a protest against the number of needlessly vacant properties in London.

Merlin Fulcher, curator at Platform One Gallery in Wandsworth Common Station said: “It's a bit ugly, but if those figures are correct this art piece is making a clever point about homelessness.

“Some people might say this is vandalism but that building has been a wreck for a long time. It's far better to use it as a canvas for meaningful messages than leaving it a rotten eyesore.”

The artwork, which features painted windows and free-standing sculptures, appeared overnight two weeks ago.

Residents originally thought it may be the work of Banksy, the famous graffiti artist, but this was denied by his spokesman.

The building is owned by Springfield Hospital and has laid empty while plans are finalised to redevelop the site.

After some deliberation, hospital bosses asked the council to remove the work because of a resident complaint.

But the mystery artist attracted praise from St Mungo’s, the homeless charity, which said vulnerable people were likely to suffer from public sector cuts.

Paul Thomas, regional director, said: “We do not condone trespassing or graffiti but this does seem like an artistic rather than a destructive way of making a point about the need for more affordable homes.”

South West London and St George’s Mental Health Trust, which owns the hospital, recently submitted plans for 850 new homes to the council.

In Wandsworth, there are 428 long-term empty private homes and 91 empty council-run homes, most of which are between tenants.

The council has registered 451 homeless people living in temporary accommodation, although this figure does not include those living on the streets.

A council spokesman said: "We work closely with the police to combat graffiti and other forms of vandalism affecting our communities. The cost of cleaning up the damage caused is an enormous burden on local taxpayers.

“We aim to remove racist or obscene graffiti within 24 hours and other forms within three working days.”

To report graffiti to the council, call 020 8871 7049 or email graffiti@wandsworth.gov.uk.