Hundreds of affordable homes lost in Camden regeneration

Hundreds of affordable homes originally promised for major Camden developments have been lost or are at risk. Developers have sought reductions to housing quotas, citing worsening economic conditions and making projects less viable.

Reduced Housing Quotas on Key Sites

At the O2 Centre site, a revised plan approved by Camden Council on Thursday will cut affordable housing from 570 homes to 330 on its 1,800-home development. Landsec, the developer, stated that 'the economic reality' had shifted since its plans were first approved, with higher interest rates and increased construction costs impacting housebuilding.

In May, a revised plan for the eight-acre Camden Goods Yard development, successful on appeal, saw affordable homes slashed from 203 to 83. A Whitehall planning inspector ruled in favour of developer Berkeley St George, allowing a reduction from 32% to 13% affordable housing on the 636-home project, a net loss of 120 homes.

According to a Camden Council report, the borough is in a 'unique crisis of affordability'. In 2025, there were 8,380 people on the waiting list for social housing, and only 84 affordable homes were started in 2025-26, among the lowest figures in London. Councillor Farrell Monk, for Fortune Green ward, described the situation as 'developers exploiting the system, and its residents on the housing register who pay for it'.

Impact on Local Businesses

Regeneration projects in areas like Camley Street have also led to the displacement of long-standing businesses. Trish Thomas, whose family ran Transauto, a vehicle repair shop, stated they were forced to leave in January after operating for over 40 years. 'The costs are pretty severe. There was no assistance relocating us whatsoever,' she said.

Paolo and his father Adolfo, who ran BMW Auto Services in Camley Street for 40 years, also had to leave in January. Paolo estimated the personal cost of displacement to be 'at least £100,000', leading to redundancy payments and unemployment for himself and his father.

Camden Council stated it had given 'each business tailored support', including financial compensation, rent-free periods, and extended timelines to vacate. The council also committed to 'securing long-term solutions where possible' and considering requests for additional assistance on a case-by-case basis. However, nearly six months after businesses vacated Camley Street, no work has begun on the site.

New Housing Thresholds

On 16 July, Mayor of London Sir Sadiq Khan replaced the city-wide affordable housing threshold with borough-specific goals to stimulate house building. Under this new draft plan, Camden Council's affordable housing threshold increased from 20% to 35%. City Hall said these measures would 'maximise the number of affordable homes being built during this difficult period'.