Work seems to be happening again now.
Thought I'd check the latest on the planning history, and it's still a complete mess.
In May this year they applied for a "non-material amendment". The amendment sought was basically a statement that the work is to be carried out according to the initial permission "for the avoidance of doubt".
So seems to be a way of letting them get away with starting the work after the expiry date. Anyway, it is formalised that they shoudl be building according to the original permission. There was another variation a couple of months later which allowed them to make changes to internal layout and side elevations.
However, they should be building the front facade according to the original permission. The original permission had a condition on it that they should submit further details of the front facade for approval. This happened in December 2010, and this is the drawing that was approved (it's the same one I put on the first page of this thread):
Pretty clear that what they are building doesn't match in the details though. Supposed to be painted brickwork. But the infills have been done in concrete block and the signs on the scaffold suggest the whole thing is going to be rendered (ie will probably be done on the cheap and look rubbish in a few years time). Also, no sign of the brick arches on the repositioned windows and no sign of any attempt to recreate the decorative string course indicated on the drawings.
Lambeth is fairly much letting them build what they want. Why bother spending money on planning fees eh? You don't really need planning permission after all.