Key Highlights
- Developer Berkeley cut the number of affordable homes in its Peckham scheme from 35% to just 8%.
- The proposed Aylesham Centre redevelopment includes retail and office space, with 15 buildings ranging from five to 20 storeys high.
- Southwark Council argues that the viability assessment cannot justify reducing affordable housing below the London Plan minimum of 35%.
- The Planning Inspectorate inquiry into Berkeley’s Peckham scheme will run for eight days, starting yesterday.
Developer’s Decision to Cut Affordable Housing
Berkeley Group, a major housebuilder, has faced criticism as it defends its decision to slash the affordable housing portion of its controversial 877-home scheme in Peckham. The developer argued that no reasonable developer could meet the 35% London Plan requirement for affordable housing on the Aylesham Centre site due to financial constraints.
Timeline and Context
In July 2024, Berkeley submitted plans for redeveloping the shopping centre but in December of the same year, it cut the scheme’s affordable homes from 35% to just 8%, reducing the number from 270 units under the original plans to 77.
Government’s Affordable Housing Policy Shift
The government recently announced plans to reduce London’s affordable housing requirement from 35% to 20%, effective next month. Berkeley cited this policy change as evidence that the reduction in its Peckham scheme is justified, despite Southwark Council’s opposition.
Council and Community Response
Southwark Council expressed strong disapproval of Berkeley’s revised proposals, stating that they fall “well short” of the council’s aspirations for the site. The Aylesham Centre is a key strategic site in the council’s housing plans, accounting for more than half of the proposed 1,370 new homes in Peckham.
Local community groups also criticized Berkeley’s plans, with Aylesham Community Action describing them as a “shocking state of affairs.” The group argued that the vast majority of the housing units will not address the significant need for affordable accommodation in the borough.
Inquiry and Future Implications
The Planning Inspectorate inquiry into Berkeley’s Peckham scheme began on July 5, 2024. The eight-day hearing aims to evaluate whether the developer’s plans are in line with local planning laws and community expectations. The outcome of this inquiry will significantly impact future development projects in London and potentially influence other developers considering similar reductions in affordable housing.
The case highlights ongoing tensions between commercial viability, government policy changes, and local community needs as developers navigate complex planning processes in urban areas facing severe housing shortages.
