Greenwich Approves IKEA Tower and Co-Living Scheme, Defers 1,500-Home Project
Greenwich Approves IKEA Tower, Defers 1,500-Home Plan

Greenwich Council Makes Key Planning Decisions on Major Developments

Greenwich Council's Planning Board has made significant rulings on three major development proposals this week, approving two projects while deferring another over substantial concerns about affordable housing reductions. The decisions highlight the ongoing tension between development ambitions and housing affordability targets in the London borough.

1,500-Home Scheme Deferred Over Affordable Housing Reduction

The Planning Board voted to defer a final decision on the proposed Morden Wharf development, which would deliver 1,500 homes on the southwestern side of the Greenwich Peninsula. The deferral came after developer Galliard Homes requested to reduce the affordable housing provision from 35 percent to just 10 percent of the total housing stock.

Galliard representatives cited increased construction costs and changing building regulations as primary factors necessitating the reduction. The developer indicated they hoped to eventually deliver 20 percent affordable housing or possibly higher, but were waiting for the Greater London Authority to implement emergency measures to combat London's housing crisis, which would allow access to grant subsidies.

Mayor Sadiq Khan announced these emergency measures in October, enabling developers without upfront viability assessments to proceed if they can provide at least 20 percent affordable housing, with schemes able to access grant funding for approximately half of the affordable homes delivered.

Despite Galliard's commitment that 100 percent of the affordable homes would be social rent and their confirmation of ongoing discussions with the GLA, committee members expressed strong reservations. Councillor Nick Williams, representing the Greenwich Peninsula ward, described the affordable housing reduction as a "massive blow to our borough's housing targets," stating it transformed the project "from a flagship social project to a scheme that barely meets the barest of minimums."

The Planning Board voted to defer the scheme, requesting Galliard return when the emergency measures are in place and after securing a registered provider who could apply for GLA grant subsidies and operate the affordable housing provision on site.

20-Storey Tower Near IKEA Receives Approval

The Planning Board approved plans for a 20-storey tower block within the Greenwich Millennium Village development, located near the Greenwich IKEA store. The application had been deferred from a previous meeting to allow councillors to visit the site and consider concerns about the building's height and potential loss of public green space.

The approved proposal includes 258 homes, with 35 percent designated as affordable housing. The tower's height matches other approved housing schemes nearby, including the 1,251-home redevelopment of the Millennium Retail Park across Bugsby's Way, which received approval last summer.

Regarding green space concerns, the temporary green space previously on the site was always intended as an interim solution until construction began. The new proposal incorporates green space surrounding the tower block. Construction on the site is scheduled to commence this year.

Woolwich Co-Living Development Aims to Revitalize Town Centre

The Planning Board also approved plans to demolish a derelict office building at one to four Beresford Square in Woolwich town centre and replace it with a six-storey co-living development containing 156 co-living rooms.

Co-living accommodation, typically targeting young professionals, offers self-contained apartments with private bathrooms and kitchenettes alongside shared communal spaces including kitchens, gyms, and co-working areas. Developer Packaged Living suggested monthly rents between £1,500 and £2,000, inclusive of all bills and access to shared facilities.

Packaged Living, which will also manage the co-living site, expressed hopes that the development would help "bring back the glory days of Woolwich and its vibrancy." The company aims to include commercial space on the ground floor to contribute to Woolwich's night-time economy, with aspirations to secure a restaurant overlooking Beresford Square.

Planning Board members received the development positively, believing it would contribute to Woolwich town centre's resurgence and reduce pressure on the borough's reliance on Houses in Multiple Occupation (HMOs). Planning Board Chair Councillor Gary Dillon commented, "I look forward to Woolwich recapturing its former glories and more business coming into the high streets."

These decisions reflect Greenwich Council's ongoing efforts to balance development needs with community housing requirements, as London continues to grapple with its housing affordability crisis while pursuing urban regeneration projects across the capital.