Southwark Council's Planning Committee has unanimously rejected a bid by Berkeley Homes to reduce the number of affordable homes at its Borough Triangle development in Elephant and Castle from 230 to 60, despite the developer citing increased building costs and regulatory changes.
Section 73 application refused
Berkeley Homes had submitted a Section 73 application to vary the conditions of the planning permission it received last year for the scheme, which comprises 892 flats across four tower blocks of up to 44 storeys. The developer argued that the original commitment to deliver 35 per cent affordable housing was no longer financially viable.
However, at a meeting on Wednesday, September 9, the committee refused the application on three grounds: the low level of affordable housing would fail to deliver sufficient public benefit to outweigh heritage harm to the Trinity Church Square Conservation Area; the scheme would fail to meet the significant need for social rented and intermediate homes; and it would fail to deliver sufficient public benefit to outweigh harm to the amenity of nearby residents, particularly regarding daylight and sunlight impacts.
Objectors and councillors speak out
Jerry Flynn, a member of the 35% Campaign, told the committee that Berkeley Homes was "ignoring the conclusion of their own viability assessment that the development is unviable and therefore undeliverable."
A representative of the Aylesbury Estate and Scovell Estate 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."
A Scovell Estate resident told members her home would suffer 100 per cent sunlight loss and reduced daylight, forcing her to rely on electrical light throughout the day, which would have a profound impact on her career as an artist.
Berkeley Homes' position
Joe Warde-Aldam, Head of Development at Berkeley Homes, said 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."
Cllr David Watson, councillor for Borough and Bankside ward, called the 10 per cent affordable housing offer "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." He noted that Berkeley Homes made a pre-tax profit of £550 million in 2024, adding: "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, said the council had been "let down," recalling that when the original scheme was approved, the 35 per cent offer was met with surprise: "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 said 'yes, we're very convinced that we can deliver this scheme with 35 per cent', so we said 'bring it on' basically."
Consented scheme and next steps
The original consent remains valid, allowing Berkeley Homes to build 892 flats, 1,780sqm of public space, flexible commercial, food, drink and leisure uses, including a live performance music venue and a cinema, a public piazza, and a new community centre likely for the local Latin American community. Buildings including the Elephant and Castle branch of Mercato Metropolitano are set to be demolished.
Berkeley Homes has six months to appeal the refusal to the Planning Inspectorate.
