It comes two months after Homewards launched a pilot scheme in Sheffield focused on early intervention in schools, as it marked its second anniversary.
Housing associations previously pledged homes for the five-year programme, which aims to show it is possible to end homelessness through work in six UK locations.
Seyi Obakin, chief executive of Centrepoint, said: “We are pleased to work in partnership with Homewards, the Duchy of Cornwall and Lambeth Council to demonstrate that eradicating youth homelessness is achievable.
“By linking rent to individual income levels, this Innovative Housing Project offers more than shelter – it offers young people the stepping stone they need to pursue their careers, build financial resilience, and transition out of homelessness for good.
“Through this project, we will demonstrate the effectiveness of this housing model and, hopefully, inspire similar solutions across the country.”
Sam Kirkness, executive director for development at the Duchy of Cornwall, said: “We are delighted to be reinvesting in Kennington and working with Homewards and Centrepoint on this Innovative Housing Project, reflecting a shared vision to end homelessness in Lambeth, London and beyond.”
Danny Adilypour, deputy leader of Lambeth Council and cabinet member for housing, investment and new homes, said: “In Lambeth, the housing crisis is hitting hard and we are focused on fully playing our role in building the new social housing we need, and working in partnership with others to find solutions to the issues.
“So I am really pleased Lambeth Council has supported the planning application for this project brought forward by the Royal Foundation’s Homewards programme.
“It will make a real difference in the lives of young people experiencing both housing insecurity and an insecure future, plotting a supported route for them into housing and employment at a time in their lives when they need it the most.”