Canada Water Masterplan: Affordable homes could drop to just 10%

Affordable housing offered at a mammoth development in Canada Water could be cut to just 10 per cent.

New planning documents submitted to Southwark council for the Canada Water redevelopment show revised designs, including taller buildings and a potential reduction in the proportion of affordable housing delivered through the scheme.  

British Land’s original outline plan was considered to comply with local planning policy of a minimum of 35 per cent affordable housing, including 25 per cent homes for social rent. 

But, the latest viability assessment – the document that outlines how much money a developer is expected to make or lose on a given project –  claims that doing so would risk the developer losing money.  

The revised plans, which according to the developer are in response to inflation in the construction sector and new planning regulations, involve taller buildings and float a potential reduction to just 10 per cent affordable housing in order for the scheme to be viable. 

Liberal Democrat councillor for Surrey Docks Cllr Adam Hood, said: “We are deeply troubled by the huge changes to the masterplan being ushered in that fly in the face of what the community had previously been told. 

“The council must robustly challenge the viability assessment to ensure it is accurate.

“We need the 35 per cent affordable housing that was originally agreed, any less would be unacceptable to residents in Surrey Docks and Rotherhithe who need and deserve more affordable housing. 

 “I know the local community has worked in good faith with the developers for over a decade, which makes the increase in the heights and massing of these blocks, whilst potentially cutting affordable housing, even more disappointing” 

 This comes the weekend after the Southwark Housing and Planning Emergency (SHAPE) campaign led a 600-person protest against overdevelopment and a lack of affordable housing in the borough.

The demonstration came after Berkeley Homes slashed its affordable housing offer at the 867-home Aylesham Centre development in Rye Lane by more than 70 per cent, from 270 to just 77.

Liberal Democrat Leader of the Opposition, Cllr Victor Chamberlain said: “Once again we’re seeing Southwark used as a playground for developers, who are making and reneging on promises of affordable housing. 

“Our Labour council is capitulating once again to the big developers. They’ve failed to equip council officers with the in-house skills and expertise to challenge viability assessments.  

 “As a result across Southwark we’re seeing levels of genuinely affordable housing drop below even the most modest targets.”

Cllr Bethan Roberts, on behalf of the Rotherhithe Labour and Co-operative Party councillors, said a reduction to 10 per cent affordable housing would be “unacceptable”.

Cllr Roberts said: “We are deeply concerned that the commitment to deliver a minimum of 35 per cent affordable housing at Canada Water is at risk. We hope British Land will continue to engage with the council to deliver genuinely affordable homes for our local residents.”

A spokeswoman for British Land said the firm “remains in talks” with Southwark council and the GLA in order to “maximise” the delivery of affordable housing.

She said: “Given the independent reviews and ongoing talks currently taking place, we are not yet in a position to comment on the level of Affordable Housing which will be secured as part of the S73 application.

“Since planning permission was granted in 2020, we are proud of our strong progress at Canada Water and remain deeply committed to continue to invest in bringing tangible benefits to the local community and wider area.”

Cllr Helen Dennis, Cabinet Member for New Homes and Sustainable Development said the council is aware of the viability challenges, but delivering a scheme that meets the needs of the community is “paramount” and “the very basis of the Canada Water Masterplan”.

She said: “We are clear that all planning applications in Southwark must meet the needs of our borough.

“We are especially focused on the need to deliver homes that Southwark residents can afford, and that has been conveyed to the applicant in the strongest terms.

“We are at the start of the planning process and we expect that the report setting out the final position, including the council’s own viability assessment, will be considered by planning committee in the Summer.”

Pictured top: An aeriel view of the Canada Water site as it looks today (Picture: Southwark council)