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Home News London

Developer got permission for Elephant and Castle scheme – now it wants to cut affordable housing

All Access London Team by All Access London Team
September 4, 2026
in London
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Developer got permission for Elephant and Castle scheme – now it wants to cut affordable housing
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The number of affordable homes proposed in the Borough Triangle development have reduced from 230 to 60

Southwark councillors have been advised to reject amended proposals for a scheme in Elephant and Castle after the affordable housing offer dropped to 10 per cent.

Applicant, Berkeley Homes has submitted a new Section 73 application for its Borough Triangle development, which was narrowly approved by Southwark councillors last year.

A Section 73 application lets a developer apply to vary or remove conditions attached to previously approved planning permission.

Under the latest plans, Berkeley Homes wants to reduce the total amount of affordable housing from 35 per cent to a minimum of 10 per cent by habitable room. This equates to the loss of 170 affordable homes.

The developer also plans to widen the stair and lift cores in some of the buildings and update some of the internal layouts and design of the homes to comply with the latest fire regulations.

Southwark Council’s Planning Committee has been recommended to refuse the plans at a meeting next week (September 9).

Planning officers working for the council have said the proposed development would fail to deliver “sufficient public benefits” due to the “low level” of affordable housing on offer.

They also don’t believe there are enough public benefits to outweigh the heritage harm it has on the character and appearance of the Trinity Church Square Conservation Area – particularly because of the height, scale and massing of Blocks A and B.

Berkeley Homes still plans to build the same number of homes as the consented scheme, consisting of 892 flats in four tower blocks up to 44 storeys high.

However, the number of affordable homes has dropped from 230 to 60. The previous affordable housing offer included 153 social rent homes, but now only 42 social rent homes could be built.

A Berkeley Homes spokesperson previously told the Local Democracy Reporting Service (LDRS) that they aim to deliver 20 per cent affordable housing, provided it could access “the full benefits” of the Government and the Greater London Authority’s (GLA) new planning route.

However, planning officers said they could only consider the formal offer of 10 per cent affordable housing that is being proposed, and said they had not seen “any evidence” that Berkeley Homes has explored grant funding or Community Infrastructure Levy (CIL) relief.

The number of wheelchair accessible homes are set to stay the same, but the number of affordable wheelchair accessible properties has dropped from 31 to 20.

Due to changes to internal layouts, the number of rooms across the development has reduced from 2,667 to 2,572 – a reduction of 95 rooms in total.

According to its planning statement, Berkeley Homes has encountered several viability challenges with the approved development, including the impact of the Covid-19 pandemic, high interest rates, “spiralling” construction costs and greater regulation.

Planning consultancy Lichfields argues it is necessary for Berkeley Homes to submit the Section 73 application with the proposed amendments to ensure the scheme still goes ahead.

The development is set to create 1,780sqm of public space. Flexible commercial, food, drink and leisure uses, including a live performance music venue and a cinema are all still included in the latest plans.

The plans will also deliver a public piazza and a new community centre, likely for the local Latin American community.

A number of buildings, including the Elephant and Castle branch of the popular food hall, Mercato Metropolitano, are set to be demolished to make way for the development.

At the end of last year, Mercato Metropolitano confirmed to the LDRS that its Elephant and Castle site will stay open until the end of 2026.

A replacement food hall is part of the planned development. But until it is finished, most of the 40 traders with stalls in Mercato Metropolitano will have to find alternative arrangements.

There are plans to accommodate some traders in a temporary nearby location by Berkeley while the scheme is under construction.

Block by block breakdown of Borough Triangle development

  • Block A : 294 flats, 38 storeys, will also feature new community centre, public toilets, retail and commercial units
  • Block B: 372 flats, 44 storeys, will also feature retail and commercial units
  • Block C: 131 flats, 10 – 14 storeys, a new long-term food hall will be built there
  • Block D: 95 flats, 18 storeys, retail and commercial space is also proposed

During the public consultation stage, the amended plans received 54 objections and two letters of support.

Objections were in response to the reduction of affordable housing, along with reducing the affordable housing offer for wheelchair accessible homes. Other concerns included the height of the buildings and the impacts on the daylight and sunlight of neighbouring properties – which were raised in the previous consented scheme.

One person in support of the plans said: “London is in a housing crisis with a shortfall of over 60 per cent on housing completions and 90 per cent on starts. This development is taking underutilised land and providing hundreds of homes with appropriate densification of the area.”

Local groups, Southwark Law Centre and the 35% Campaign, raised concerns over the new affordable housing offer and lack of family-sized housing. The council’s Planning Committee will ultimately decide on the plans next week.

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Tags: affordableCastlecutdeveloperElephantElephant and CastleGreater London AuthorityHousingpermissionschemeSouthwarkSouthwark Council
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