Developer slashes affordable housing at Peckham’s Aylesham Centre

A developer has cut its ‘affordable housing’ offer at Peckham’s Aylesham Centre site by more than 70 per cent.

Berkeley Homes has notified Southwark council that the number of affordable properties to be built on the 867 home redevelopment in Rye lane will be reduced from 270 to just 77.

A Berkeley Homes spokesman said the decision comes as a result of rising costs, “exacerbated by the length of the planning process”.

But, Cllr Helen Dennis described the move as “very disappointing”.

In a statement the Cabinet Member for New Homes and Sustainable Development said: “There is a huge need for more genuinely affordable homes in Southwark.

“Peckham is one of many areas in our borough with a severe need for genuinely affordable homes.”

There are currently more than 4,000 households in Peckham and the nearby area on the waiting list for social housing. 

Cllr Dennis said: “Every affordable home not built is a lost opportunity to give local people a decent place to live.”

The new proposal would also see the loss of a Community Land Trust which would provide community-led affordable housing and is part of the Local Plan site policy.

Cllr Dennis said: “We are clear about our expectations that all planning applications in Southwark must meet the needs of our borough, including our policies and requirements for green space, local business, transport and genuinely affordable housing.

“This is a live planning application and I cannot comment further.”

Concerns over the redevelopment of the Aylesham centre have been bubbling up for around eight years.

In 2021, developers Blackrock sold the site to Berkeley Homes for an undisclosed fee, halting a planned £450million development.

In February 2024, after consultation with residents, the developer’s revised scheme reduced the homes from 1,050 to 850 with blocks rising to a maximum 20-storeys – still significantly taller than anything else in the area. 

Berkeley insists it is focussing on the “identity and character of Peckham” to create a scheme that will “enhance the lives” of local people. 

But there has been widespread criticism from residents, who say plans will irreparably damage its existing strengths as a centre for specialised BAME goods, services, and creative industries.

Residents’ group Aylesham Community Action has been at the forefront of the campaign, working closely with Peckham Vision.

A Berkeley spokesman said: “We are disappointed to be making these changes. However, having worked for over three years to get the project to this stage, we remain committed to making it happen. 

“It still delivers significant benefits for the community and the council – homes, affordable homes, a new supermarket, new commercial space including space for existing traders, high quality public realm and jobs for local people.”

The updated affordable housing offer from Berkeley Homes will be reported to Southwark council’s planning committee, which will assess the application.

The application is due to go to the council’s planning committee in Spring 2025.

Pictured top: Protesters organised by Aylesham Community Action take to the streets earlier this year (Picture: Aylesham Community Action)