Council leader Vicky Naish said: 'The people of Peckham have had more than their fair share of problems to deal with in recent weeks, and the idea of a hostel for serious offenders being erected within a few hundred yards of Damilola Taylor's school is little short of outrageous.'
Ms Naish wrote to Home Office minister Paul Boateng and local MP Harriet Harman demanding the plans be postponed pending further consultation. The Home Office has agreed to delay plans to give the hostel the go-ahead until next month.
Plans for a similar hostel in Wandsworth have been deferred until the summer, following opposition from council leader Edward Lister, who said: 'To proceed with this plan without proper and adequate safeguards is totally unacceptable.'
A letter to Mr Boateng claims proper procedures were not followed and operational details have not been discussed with the police and social services.
The Home Office said: 'There will now be full consultation with local agencies and councils.'