Berkeley Homes got permission last year to build 2,000 homes in Elephant and Castle but now claims it’s not financially viable for more than 60 to be affordable
Southwark councillors have unanimously refused to allow a developer to cut the level of affordable housing in a scheme it already has permission to build.
Berkeley Homes had submitted a Section 73 application for its Borough Triangle development in Elephant and Castle, which was narrowly approved by councillors last year. A Section 73 application lets a developer apply to vary or remove conditions attached to previously approved planning permission.
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, it had wanted to drop the number of on-site affordable homes from 230 to 60, citing increased building costs and changes to housing regulations.
However, those reasons weren’t enough to convince Southwark Council’s Planning Committee to approve the revisions on Wednesday evening (September 9).
Jerry Flynn, a member of the 35% Campaign who was speaking against the amendments, said Berkeley Homes was “ignoring the conclusion of their own viability assessment that the development is unviable and therefore undeliverable”.
An objector who was representing the Aylesbury Estate and the Scovell Estate TRAs (Tenants and Residents Associations), along with Queensborough Community Centre and Age UK, said: “The Queensborough Community Estate, the Scovell Estate, Age UK and the Scovell Estate Park are vital community assets used for recreation, play, social contact and well-being.
“The proposed development already places them in significant shadow. Families should not be priced out of the area and separated from schools, support networks, employment, and established community ties.”
She added: “Maximising affordable housing would help local children and families remain part of this community, and would support the continued vitality of nearby schools and services, so we urge you to reject the proposal.”
A resident from the Scovell Estate later told committee members her home would have 100 per cent sunlight loss and reduced daylight, and would have to rely on using electrical light throughout the day. She said this would have a profound impact on her career as an artist as she relies on light in her home.
Joe Warde-Aldam, Head of Development at Berkeley Homes, told committee members that the delivery of the consented 35 per cent affordable housing was “always contingent on an improved economic outlook and unprecedented levels of social housing grant”.
He added: “Unfortunately since the application was submitted in June 2024, the opposite has transpired. Sales values have dropped, sales volumes have decreased, and increased regulation has elongated development programmes and increased build costs.”
Location of development site (story continued below)
Developer ‘pleading poverty’
Cllr David Watson, a councillor for Borough and Bankside ward, where the scheme is located, said the 10 per cent affordable housing offer was “a slap in the face” for residents who have “told us clearly since day one that any housing solution that is unaffordable to real local people will not fix our housing crisis”.
Cllr Watson added: “Time and time and again, this committee has heard developers pleading poverty when it comes to providing affordable housing. The committee must be clear that a building featuring 90 per cent homes that residents could never afford is not acceptable.”
He added: “Berkeley Homes, the developer behind this proposal made a pre-tax profit in 2024 of £550 million. Our residents are shocked and appalled that such a large company feels the need to inflate its profit margins even further at the cost of local families.”
Cllr Kath Whittam, Chair of the Planning Committee, who was among those to approve the original scheme last year, said the council had been “let down”.
Cllr Whittham said: “We were amazed that the 35 per cent was being offered to us and I’m sure we kept saying, are you sure you can afford to put forward 35 per cent?
“And they [Berkeley Homes] said ‘yes, we’re very convinced that we can deliver this scheme with 35 per cent’, so we said ‘bring it on’ basically.”
Revisions rejected
The committee proceeded to go into closed session to determine its decision. Ahead of Wednesday’s meeting, the committee had been advised by planning officers to refuse the Section 73 application as it would fail to deliver “sufficient public benefits” due to the “low level” of affordable housing on offer.
Around 40 minutes later, the committee returned to issue a verdict on the application.
The committee ultimately refused the application on three grounds, owing to the low level of affordable homes:
- The scheme would fail to deliver sufficient public benefit to outweigh any heritage harm to the character and appearance of the Trinity Church Square Conservation Area, owing to the height scale and massing of proposed blocks A and B.
- The scheme would fail to meet the significant need for social rented and intermediate homes.
- The scheme would fail to deliver sufficient public benefit to outweigh the harm to the amenity of the joining and nearby residents and in particular the daylight and sunlight impacts.
What is included in the consented scheme?
Under the consented scheme, Berkeley Homes has permission to build an 892-flat development in Elephant and Castle. It also has permission to create 1,780sqm of public space which would include flexible commercial, food, drink and leisure uses, including a live performance music venue and a cinema.
The plans also include 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.
What could happen now application has been rejected?
As it stands, the original planning consent issued to Berkeley Homes last year is still valid and has not changed.
But even though the Section 73 application was ultimately refused by Southwark Council’s Planning Committee, Berkeley Homes has the chance to appeal the decision to the Planning Inspectorate. An appeal must be lodged within six months.
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