Green light for 26-floor residential tower next to Shard ©Getty Images The Shard is the tallest building in western Europe A London council has given the go-ahead to plans for a 26-storey residential tower next to the Shard. It is the latest luxury residential property development to move forward in the capital, despite signs of a slowing market. Southwark council voted to allow Sellar Property Group and Qatar to develop the new tower, which will be designed by Shard architect Renzo Piano. Their new 180,000 sq ft residential block will replace Fielden House, a 1950s office building, and contain 148 luxury flats. The new building forms the next phase of Sellar's London Bridge Quarter project. This has already seen the building of the Shard, the tallest building in western Europe, and a 17-storey office building next door nicknamed the "Baby Shard," which houses the UK operations of News Corp. These were developed by Sellar and Qatari Diar, which is a $4bn subsidiary acting for Qatar's sovereign wealth fund, the Qatar Investment Authority. Though design plans are still in early stages, the new tower will feature a roof garden at the 15th floor that will wrap around the narrower top part of the building, and is likely to incorporate other signature Piano features. The 77-year-old architect has also designed The New York Times building in Manhattan and Maison Hermès in Tokyo. The new building will add to the Shard's 62,000 square feet of residential space, which are split into 10 apartments that have not been sold. Residents in the London Bridge area expressed concern that the new building may also lie empty while local people in search of homes are priced out of the area. Current occupiers of Fielden House who will need to move include the London Ambulance Service. Sellar said, given the location of the new tower, there was likely to be substantial interest in the flats. Sales in the prime central London market - areas such as Knightsbridge, Chelsea, Kensington and Belgravia - fell a third year on year in the third quarter of 2014, according to exclusive research carried out for the Financial Times by data firm Lonres and analysis company Dataloft. Southwark council said Sellar and Qatari Diar were committed to providing affordable housing as close to the site as possible and any failure to do so in a reasonable time would result in the council getting £18.8m. Southwark councillor Mark Williams, who is responsible for planning, told the FT that he welcomed development of the London Bridge Quarter as it brought jobs and prosperity to the area. The development coincides with a complete rebuilding of nearby London Bridge railway station, which will be completed by 2018. The developers said the building would benefit the public realm in London Bridge because it would be raised above street level, with a staircase built to link two nearby streets. Southwark planners had recommended the project for approval and yesterday's vote was unanimous. The new building will add to the Qatari government's portfolio of investments in the UK. The Qatar Investment Authority already owns Harrods, the Olympic Village and 10.3 per cent of the London Stock Exchange.