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almac68
In principle, Pete's right that building on MOL is highly undesirable. I haven't caught up on the policy changes that make it easier to build on it, so don't know about how safeguards are handled, but in general any such moves are a bad thing.
However, looking at the site, I think it is highly suitable for housing. It looks as if they're converting most of it into a kind of pocket park connecting to the (fenced-off) space of Nunhead Reservoir, with the block only occupying a narrow slice of it. I can't say I care much for the design (sorry, Al), but this certainly doesn't seem like a bad project.