The controversial regeneration scheme offered just 12 per cent affordable housing
Plans for a controversial regeneration scheme in South London offering just 12 per cent affordable housing have been rejected by a Planning Inspector.
Berkeley Homes had lodged an appeal directly to the Planning Inspectorate in relation to its redevelopment plans for the Aylesham Centre in Peckham, despite fierce opposition from Southwark Council, housing campaigners and the local community.
Berkeley Homes previously said it had “no other option” but to appeal its plans on the grounds of non-determination from the council.
In a decision published on Monday (May 18), the appeal was refused on heritage grounds, with some of the proposed tower blocks described as “out of scale” and “visually intrusive”.
In his conclusions, Planning Inspector Matthew Shrigley said: “Although the appeal scheme does have some positive design attributes and high order benefits, the elements of harm identified are not outweighed.”
Mr Shrigley went on to say even if 35 per cent affordable housing was delivered, as was pledged in Berkeley Homes’ initial plans, he still would have found that the level of harm in this case “would not be overridden”. Berkeley Homes has been approached for comment.
Commenting on the outcome of the decision, Cllr Sarah King, Leader of Southwark Council, said it was “a great day for Peckham” and welcomed Mr Shrigley’s refusal.
Cllr King said: “I’d like to personally thank the community who spoke loud and clearly about their concerns.
“We shared those concerns and strongly argued at the public inquiry that the scheme was poorly designed and our position has been vindicated. We will read the appeal in detail and carefully consider our next steps.”
Local campaign group, Aylesham Community Action (ACA), which had opposed the plans from Berkeley Homes as well as two earlier schemes, had fundraised more than £55,000 to help pay for a barrister to represent them at the Planning Inquiry which began in October 2025.
Siobhan McCarthy from ACA, said: “The inspector puts it in black and white: this a generational opportunity for Peckham.
“So there now must be real, comprehensive, lasting, grassroots input from the community on any future plan for the Aylesham site.”
Other local organisations which did not support Berkeley Homes’ plans included Southwark Housing and Planning Emergency (SHAPE), Peckham Vision, Peckham Heritage, Latin Elephant, and The 35% Campaign.
Comedians James Acaster and Nish Kumar helped raise money for ACA’s campaign by performing in Peckham Levels last October.
What were the Aylesham Centre plans?
Under the most recent plans, Berkeley Homes had wanted to bulldoze the 1980s Aylesham Centre to deliver 867 new homes of which 50 would be social rented and 27 would be intermediate.
A new Morrisons store as well as retail, leisure and commercial space were also planned. Berkeley Homes had wanted to build 16 blocks in total, with several buildings set to be up to 20 storeys high which would have changed the Peckham skyline forever.
Berkeley Homes’ original plans had pledged to deliver 35 per cent affordable housing by habitable room, including 185 social rented and 85 intermediate homes as part of an 877-home development overall.
The amended proposals saw the affordable housing drastically reduced, and a Community Land Trust (CLT) scrapped, which would have provided low cost locally-designed housing.
Berkeley Homes previously said it reduced the affordable housing on offer due to the uncertainty around the availability of GLA (Greater London Authority) funding for affordable housing, and not being able to secure planning permission as soon as it had hoped, as well as building costs increasing and regulatory changes.
Berkeley Homes’ scheme had undergone two public consultations, one for the original plans and one for the amended ones.
In total 27,141 neighbours were consulted. The plans received 2,505 responses, of which 2,427 were objections, 59 were in support while there were 19 neutral comments.
Southwark Council’s Planning Committee went on to refuse the plans, citing the lack of affordable housing on offer and the impact the plans would have on the area’s local heritage.
Even though the council’s decision to refuse the plans did not actually determine the outcome of the application, it still needed to confirm its stance on the development ahead of October’s Planning Inquiry.
Campaigners had called it a ‘David and Goliath’ battle against Berkeley, and that if approved, it would have been “gentrification on steroids” and would have displaced communities, local traders, and wrecked Peckham’s heritage.
A spokesperson for Berkeley Homes previously told the LDRS: “This is a site that has been earmarked for housing for 11 years now. Two previous developers failed to come up with a workable project.
“We have been working with the council, local residents and businesses for four years and have sought to accommodate everyone’s wishes, as far as possible, along the way, while keeping the project viable. After all this time, effort and money, if Berkeley is to build homes, we have no other option but to appeal for non-determination.”
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