Westminster Council has said the proposed development of Chelsea Barracks as luxury residential flats should be scaled down, Property Week has reported.
Its first planning report advised developers to consider the effect on nearby residents and suggested they reduce the height of the build.
The council’s report said there "are clearly significant issues regarding reductions in daylight and sunlight to habitable rooms, overlooking, and a sense of enclosure".
However, it did recognise that any high density scheme "is unlikely to be carried out without some impact on adjoining occupiers".
Chelsea Barracks was bought by Qatari Diar from the Ministry of Defense for £959 million.
The development plans have angered local residents groups, with both the Belgravia Residents Association (BRA) and the Barracks Opposition Group registering their dissatisfaction.
The BRA said it was worried about the build’s effect on the architectural style and the impact of the development upon local amenities.