Members of Southwark Council’s planning committee have unanimously rejected revised plans from housebuilder Berkeley Homes for the Bermondsey Place development on the Old Kent Road. The decision came after the company reduced its affordable housing offer from 40 per cent to just 12 per cent. Local councillors voted against the plans despite their own planning officers recommending approval. Their decision showed strong opposition to the sharp cut in affordable homes in a major regeneration area in south London. According to reports published by Southwark News, The Architects’ Journal, and MyLondon, the revised plans covered 1,060 homes across the second and third phases of the wider development. Under the new proposal, just 81 of these 1,060 homes would have been affordable, a major drop from the original promise made for the site.
Viability challenges behind the reduction
The original combined planning permission for Bermondsey Place was approved in 2020. It allowed around 1,300 homes to be built across three phases, with a firm commitment that 40 per cent of the entire development, measured by the number of rooms suitable for living, would be affordable housing. Phase 1 includes 285 homes and is currently being built. It still follows the original promise of providing 40 per cent affordable housing. However, when Berkeley Homes submitted new plans for the remaining phases, the company argued that rising construction costs and changing economic conditions had made the original target too expensive to deliver. As explained by legal and planning website Planning Geek, the developer proposed a new design prepared by architecture firm PRP. The changes included different building heights and sizes, revised building layouts, and changes to public spaces. The plans also added second staircases to meet updated building safety rules. Under the company’s revised financial calculations, keeping the original 40 per cent affordable housing in Phase 1 while reducing the figure to 12 per cent in Phases 2 and 3 would have brought the total affordable housing across the entire development down to just 17.9 per cent. To address this reduction, Berkeley Homes proposed three separate reviews of the project’s financial position during construction. These reviews would allow the council to secure more affordable housing contributions if market conditions improved.
Council committee takes firm stance
Although planning officers advised that the reduced offer was the highest level of affordable housing the project could currently afford, members of Southwark Council’s planning committee rejected the application in a unanimous 6-0 vote. During the meeting, councillors raised concerns about the long period planned for completing the homes. They also questioned the financial figures and assumptions provided by the developer. Comments from council leaders showed strong frustration with efforts to reduce the amount of social and intermediate housing in the development. Speaking to MyLondon, Councillor Victor Chamberlain, Deputy Leader of Southwark Council and Executive Member for Neighbourhoods, Strategic Planning and Wellbeing, praised the committee for refusing to accept the developer’s proposed cuts. “It’s vital that new development in Southwark brings what local people and communities badly need, especially much-needed affordable housing,” Chamberlain said in statements reported by MyLondon. “Both these planning applications seek to do the opposite and cut the amount of affordable housing, so we have refused them both.” Chamberlain also said he would write formally to the Mayor of London. He wanted City Hall to respect the council’s decision rather than step in and overturn the local refusal.
Developer defends scheme and points to council fees
Berkeley Homes expressed strong disappointment with the committee’s decision to reject the plans despite the recommendation from its own professional planning officers. The company pointed to additional costs and building regulations as major reasons for the project’s financial difficulties. Justin Tibaldi, Managing Director at Berkeley Homes, defended the company’s position in statements given to MyLondon. He highlighted the large financial contributions that local authorities were requiring from the development. “We are disappointed that the committee overruled its own planning officers’ recommendation and blocked over 1,000 new homes and hundreds of jobs within a designated regeneration area,” Tibaldi said. “We are particularly concerned that members would not acknowledge or engage with the council’s own analysis of the site’s viability challenge.” Tibaldi also argued that charges imposed by the council were reducing the money available to support affordable housing on the site. “The decision also fails to recognise that the council is charging this project £30 million through its Community Infrastructure Levy and Section 106 requirements, which is funding that could otherwise be used to increase the number of affordable homes,” Tibaldi stated. He added that Berkeley Homes remained committed to the development and was considering what steps to take next.
Wider battle over London housing targets
The dispute over Bermondsey Place reflects a wider disagreement across London. Local councils are trying to meet affordable housing targets, while housebuilders are dealing with inflation, rising material costs, and new fire safety requirements. The rejection also comes as Southwark Council continues to push back against developers who want to change their existing planning commitments. As reported by MyLondon, London’s Mayor, Sadiq Khan, has considered taking control of planning decisions in the borough when local refusals could delay the delivery of overall housing targets. For Bermondsey Place, the rejection means there is now uncertainty over when the remaining 1,060 homes will be built. Berkeley Homes must decide whether to appeal to the Planning Inspectorate or submit different plans for the development.