London mayor Boris Johnson has again backed plans for the redevelopment of Real Estate Opportunities' Battersea Power Station in London. The mayor said the design was "encouraging" even though it technically failed its planning application because it does not comply with the London plan.

Real Estate Opportunities is a listed property vehicle majority owned by Richard Barrett and Johnny Ronan's Treasury Holdings. The loans used to buy the site are expected to be moved into Nama in the coming months.

REO has not submitted any affordable housing plans for the site but Johnson said he hoped the "maximum reasonable amount" would be given over to that.

He also requested additional details on the retail element of the plan.

While still in at an early stage, the sticking point for the project is likely to be transport links.

The mayor's office has categorically ruled out any prospect of public funds being used to extend the Northern Line to the site, while the developers are known to consider the extension of the underground line crucial for the success of the project.