Mayor Sadiq Khan to decide fate of 1,900 Southwark homes

The future of almost 1,900 homes in Southwark will now be decided by the Mayor of London, Sadiq Khan, after Southwark Council refused revised plans from developer Berkeley Homes. The council's Planning Committee rejected both the Borough Triangle development in Elephant and Castle and the Bermondsey Place scheme on the Old Kent Road.

Berkeley Homes had submitted new proposals for both sites, which had previously received planning permission. The developer cited viability concerns as the reason for seeking to significantly reduce the amount of affordable housing offered. For the 892-home Borough Triangle scheme, the company proposed cutting affordable housing from 35 per cent to 10 per cent. For the final two phases of Bermondsey Place, which was set to deliver over 1,000 homes, the reduction was from 40 per cent to 12 per cent.

Council's reasons for refusal

Southwark Council's Planning Committee rejected both applications, concluding that the revised proposals would fail to meet the significant local need for social rented and intermediate homes. The borough currently has more than 22,000 households on its housing waiting list, with over 4,200 households living in temporary accommodation. Cllr David Watson, speaking during one of the hearings, accused Berkeley Homes of 'pleading poverty' regarding the Borough Triangle scheme.

Mayor's intervention

Both applications have now been called in by the Mayor of London. The Greater London Authority (GLA) stated that both developments have the potential to make a significant contribution towards meeting Southwark's housing targets and London's strategic targets for net housing completions. The Borough Triangle scheme was called in on October 5, and Bermondsey Place on October 26. No hearing dates have yet been set for either decision.

Cllr Victor Chamberlain, Deputy Leader of Southwark Council, expressed disappointment with the Mayor's decision. He stated, 'It’s vital that new development in Southwark brings what local people and communities badly need, especially much-needed affordable housing. Both these planning applications seek to do the opposite, and cut the amount of affordable housing, so we have refused them both.' He added that he would write to the Mayor urging him to uphold the council's decisions.

Jerry Flynn of the 35% Campaign criticised the Mayor's intervention, stating, 'The council made good decisions when it rejected their applications to reduce affordable housing and the Mayor should not be calling them in.' He referenced a previous instance where the Mayor allowed a developer to significantly reduce affordable housing for a scheme in Southwark.

Jed Holloway, Planning Solicitor at Southwark Law Centre, commented that economic pressures do not justify developments failing to meet local needs. He also raised concerns about the potential for such developments in low-income areas like the Old Kent Road to exacerbate gentrification and increase local rents.

Berkeley Homes, through its Managing Director Justin Tibalidi and Head of Development Joe Warde-Aldam, expressed disappointment with the council's rejection. They highlighted concerns that the committee did not acknowledge the council's own analysis of the sites' viability challenges and that the delivery of previously consented affordable housing was contingent on improved economic outlooks and grant funding.

What happens next

The Mayor of London will now determine whether to approve or reject the revised housing schemes. A hearing date for the Mayor's decision on both the Borough Triangle and Bermondsey Place developments has not yet been scheduled.