Camden Council is poised to approve changes to the £1bn O2 Centre regeneration in West Hampstead, reducing the number of affordable homes by 240, as its public consultation concludes. Landsec's 14-acre masterplan, which includes 1,800 new homes, restaurants, a cinema, and green spaces on brownfield land along Finchley Road, will be forwarded to the Mayor of London's office for approval later this week, following several contentious modifications.
Affordable Housing Cuts Amid Financial Pressures
Initially approved in 2023, the project has faced delays due to financial strains, including rising construction costs, interest rates, and new building regulations that required redesigns. After Mayor Sadiq Khan slashed affordable housing targets from 35% to 20% as part of an "emergency" package to boost construction in London, the scheme's allocation for low-income households dropped from 570 (31%) to 330 (18%). This reduction of 240 affordable homes has sparked objections from the public, opposition politicians, and even a specialist within the council.
An unnamed 'Senior Community Partner' criticized plans to reduce a proposed community space to just 71 square meters, comparing it to the size of a meeting room. Cllr Janet Grauberg (Liberal Democrats) stated that West Hampstead residents would be "really angry" at the cuts, given that the Labour administration had already fallen short of its stated 50% affordable homes target for new developments in the borough. "The only people who benefit will be the developers," she said.
Design Changes and Community Concerns
One local resident complained that the planned gap between construction phases would leave "a couple of towers in the middle of a car park for so many years." However, Camden's planning officers deemed the cuts necessary to ensure the project's sustainability and to deliver a significant number of new homes to meet the borough's "urgent" housing needs. The council added that smaller blocks guarantee a "better outlook" for many homes.
The redesigns were first proposed in June, but the council extended its consultation due to an administrative error. The final feedback window closed on Saturday, August 15. The scheme will still meet the approved 1,800 new residences, but a 10-storey residential tower has been reduced to just two storeys, while up to two storeys have been added to a different tower slated for the first phase.
Environmental Enhancements and Future Phases
The updated plan also aims to improve the site's natural environment (Biodiversity Net Gain) by including more public open space, a larger park, and hundreds of new trees. The wider scheme will deliver public open space, including a 'Linear Park' through the neighborhood and a town square surrounded by shops and restaurants, plus a new GP surgery. During the third phase, scheduled between 2035 and 2041, the O2 shopping centre, originally built in 1996, will be demolished. Under the approved plans, Finchley Road's existing Vue cinema, sports and leisure facilities, and large supermarket will all be replaced.
These developments come as Sadiq Khan faces a High Court challenge to his "time-limited" changes to housing targets, launched by the leaders of Hackney, Lewisham, and Tower Hamlets councils. Camden's Planning Committee is set to vote on the updated scheme on Thursday, August 20.
