Developer halves affordable housing for new site as residents struggle to afford ‘skyrocketing’ rents

Residents struggling to afford “skyrocketing” rents have hit out at a developer who has halved the number of affordable homes being provided on a new site.

The Renewal Group has reduced the number of homes planned for phase two of its 3,500-home New Bermondsey development in Lewisham, after agreeing to pay £25millon for a new train station.

Renewal has cut affordable housing from 35 per cent to 17.58 per cent for the phase – a drop from 199 to 99 homes – because of an updated strategic transport contribution to a new Overground train station on the site.

Anttoni Laukkanen, 39, of New Cross Road, has lived in South Bermondsey for four years.

He said: “I used to pay less than £500 for a single room in Lovelinch Close, now it seems to be a headache to find anything under Hackney prices. 

“Due to the surging rents I can now only afford a guardianship room, which I’m paying £850 for on a limited license agreement.”

The affordable housing figures remain unchanged for the four other phases, according to a report presented to Lewisham’s strategic planning committee in July.

Renewal’s final application, approved by Lewisham council earlier this month, was praised as the largest amount of affordable housing in any single application submitted to the council. 

At the time, Cllr James J Walsh, Cabinet Member for Inclusive Regeneration and Planning, said: “I am delighted that we continue to make sure that Lewisham is bringing forward much-needed mixed-use housing developments for our borough, helping to tackle the ongoing housing crisis and unlocking an underdeveloped part of our city.”

Mr Laukkanen described the revised number of affordable properties as a “betrayal”.

He  said: “South Bermondsey is being stripped off of grassroots culture and sense of community in favour of yet another clinical glass house haven for the privileged. 

“The plan around the new overground station will erase three popular event venues and several artist studio complexes, which is a death sentence to a substantial part of the creative community.

“This just makes the area less attractive to me, not to even speak of the skyrocketing rents.”

Renewal received planning permission in 2022 for the 30-acre development project, proposed for the land surrounding Millwall Football Club.

The new station at Surrey Canal Road, which will be between Surrey Quays and Queens Road Peckham, was initially meant to be funded by Transport for London (TfL) using money from the Housing Infrastructure Fund.

TfL said that rising inflation and increased costs had led to other projects being prioritised ahead of the Surrey Canal Road station.

In the initial agreement, Renewal had consented to contribute towards the delivery of the station if necessary.

Because the train station is of “high strategic importance”, Renewal agreed to make a total station contribution of £25million.

This comes after Lewisham council created a housing delivery action plan in June, after failing to meet its targets in a Housing Delivery Test by delivering 386 homes in 2021-22, instead of its target of 1,667.

Lewisham council have been approached for comment.

Pictured top: Anttoni Laukkanen described the cut in affordable housing as a “betrayal” (Picture: Anttoni Laukkanen)