Southwark Council Refuses Berkeley Homes' Bid to Cut Affordable Housing

Southwark Council's Planning Committee has refused an application by Berkeley Homes to reduce the number of affordable homes at its Elephant and Castle development. The developer had sought permission to lower the provision from 230 to 60 units.

Developer's Rationale and Council's Response

Berkeley Homes submitted a Section 73 application to vary conditions on its previously approved Borough Triangle development. The company stated that increased building costs and changes to housing regulations made the original commitment financially unviable. Joe Warde-Aldam, Head of Development at Berkeley Homes, told the committee that sales values had dropped and build costs had risen since the initial application in June 2024. He indicated that delivering the consented 35 per cent affordable housing was contingent on an improved economic outlook and social housing grants, which had not materialised.

However, councillors questioned the developer's claims. Councillor David Watson, representing Borough and Bankside ward, described the 10 per cent affordable housing offer as "a slap in the face" and highlighted that a building with 90 per cent unaffordable homes would not address the local housing crisis. He noted that Berkeley Homes reported a pre-tax profit of £550 million in 2024, stating that residents were "shocked and appalled" by the company's attempt to increase profit margins further at the expense of local families. Councillor Kath Whittam, Chair of the Planning Committee, expressed disappointment, recalling the developer's assurance that they could deliver the original 35 per cent affordable housing.

Reasons for Refusal

The committee, advised by planning officers to refuse the application due to insufficient public benefits, ultimately rejected the proposal on three grounds. These included the low level of affordable homes, which would fail to meet the significant need for social rented and intermediate housing. The committee also cited heritage harm to the Trinity Church Square Conservation Area, stemming from the height, scale, and massing of proposed blocks A and B. Furthermore, the application was refused for failing to deliver sufficient public benefit to outweigh the harm to the amenity of nearby residents, particularly concerning daylight and sunlight impacts.

Objectors speaking at the meeting raised concerns about the impact of the development on community assets and local residents. Representatives from the 35% Campaign, Aylesbury Estate and Scovell Estate TRAs, Queensborough Community Centre, and Age UK argued that maximising affordable housing was essential for local families to remain in the community. One resident from the Scovell Estate reported that her home would experience 100 per cent sunlight loss and reduced daylight, which would significantly affect her career as an artist.

Next Steps

The original planning consent for the 892-flat development, including public space, a community centre, and commercial uses, remains valid. Berkeley Homes has the option to appeal the decision to the Planning Inspectorate within six months of the refusal.