The camp on the green next to Tidemill and Reginald House on Reginald Road was created after bailiffs evicted campaigners from the Tidemill garden last October costing Lewisham Council more than £1m.
They had camped in the garden, which was destroyed on February 27 so that development on 209 homes could begin.
An eviction hearing was expected at Bromley County Court but campaigners agreed to leave the green to avoid having to pay costs to the council, according to Save Reginald Save Tidemill.
This follows an initial eviction hearing at the same court on March 8 which was adjourned to allow the campaign to prepare their defence of human rights.
Harriet Vickers, a campaigner for Save Reginald Save Tidemill told Eastlondonlines: “We decided to not go to court in the end and to withdraw our opposition to the development to ensure the council couldn’t come after us for costs.
“We still don’t believe that they should be evicting the camp and especially in the way they have pursued it.”
Vickers added: “Protest camps are never going be forever, and after the eviction, the green near the garden was important so that everyone could come together still and show our opposition to the plans. The green was an obvious place because it was right next door.
“The campaign still continues despite us no longer having the presence on the green. The fight for Reginald House is still very important, the residents there don’t want to leave and we will continue to help them.”
She said of Lewisham Council: “The trust with the council has been eroded over the years, the council have ignored questions and voices to them by those at Reginald House and the camp. They just want guarantees, these are their homes a huge part of their life and yet they don’t get it.”
Despite the campaign retreating they will continue to oppose the redevelopment of Reginald House flats.
Vickers said: “The campaign still continues despite us no longer having the presence on the green. The fight for Reginald House is still very important, the residents there don’t want to leave and we will continue to help them.”
Paul Bell, cabinet member for housing in Lewisham said to News shopper: “I am pleased that we can progress the scheme to house people, and hope we can avoid any unnecessary eviction.”
Bell has insisted before to Eastlondonlines that development could only move forward once the camp was dealt with.
He added: “I respect their right to protest. We all live in a democracy…With everything, we need to look at what worked, and what could’ve worked better,” he explained.
The council plan which has the go-ahead includes the demolition of 16 homes at Reginald House and the Old Tidemill Wildlife Garden to make way for a 209-home development, with 114 affordable homes.