Tesco has submitted a planning application to increase the superstore it is building as part of the Streatham Hub project by some 50 per cent.

The mezzanine floor it wants to add to the supermarket will expand its retail floorspace from 40,000 to 60,000sq ft.

The supermarket giant has changed its plans to make the regeneration project, which includes building 250 new homes, financially viable after the recession dented the housing market.

A deal with Lambeth Council over the increased store size was struck in negotiations earlier this year, when the delivery details of the leisure centre, swimming pool, ice rink, transport hub and housing development was reworked to save the project.

A Tesco spokesman said: “We want to make sure the Tesco store gives customers the best possible shopping experience and the overall development delivers all the regeneration benefits previously promised. We are therefore making some small changes to our plans.

“Importantly, the basics stay the same. This is one of the most exciting regeneration projects in London. It will create hundreds of jobs and will see fantastic new leisure facilities built for the community.”

Shops in the area have expressed concerns competition from Tesco could damage them, with an increased retail space worsening the threat.