A controversial regeneration scheme in Peckham offering just 12 per cent affordable housing has been rejected by a Planning Inspector, marking what local leaders call a victory for the community.
Appeal Refused on Heritage Grounds
Berkeley Homes had lodged an appeal directly to the Planning Inspectorate for its redevelopment plans for the Aylesham Centre, despite fierce opposition from Southwark Council, housing campaigners, and local residents. The developer previously stated it had 'no other option' but to appeal on grounds of non-determination by the council.
In a decision published on Monday (May 18), the appeal was refused on heritage grounds. Some of the proposed tower blocks were described as 'out of scale' and 'visually intrusive' by Planning Inspector Matthew Shrigley.
In his conclusions, Shrigley stated: 'Although the appeal scheme does have some positive design attributes and high order benefits, the elements of harm identified are not outweighed.' He further noted that even if 35 per cent affordable housing had been delivered—as initially pledged—the level of harm 'would not be overridden.'
Community Celebration
Cllr Sarah King, Leader of Southwark Council, described the decision as 'a great day for Peckham' and thanked the community for speaking out. 'We shared those concerns and strongly argued at the public inquiry that the scheme was poorly designed, and our position has been vindicated,' she said.
Local campaign group Aylesham Community Action (ACA), which opposed the plans, raised over £55,000 to fund a barrister for the Planning Inquiry that began in October 2025. Siobhan McCarthy from ACA said: 'The inspector puts it in black and white: this is a generational opportunity for Peckham. So there now must be real, comprehensive, lasting, grassroots input from the community on any future plan for the Aylesham site.'
Other organisations opposing the scheme included Southwark Housing and Planning Emergency (SHAPE), Peckham Vision, Peckham Heritage, Latin Elephant, and The 35% Campaign. Comedians James Acaster and Nish Kumar also supported ACA by performing at Peckham Levels last October.
Details of the Rejected Plans
Berkeley Homes had proposed bulldozing the 1980s Aylesham Centre to build 867 new homes, with only 50 social rented and 27 intermediate affordable units. The scheme also included a new Morrisons supermarket, retail, leisure, and commercial spaces, across 16 blocks—some up to 20 storeys high—which would have dramatically altered Peckham's skyline.
Original plans had pledged 35 per cent affordable housing, including 185 social rented and 85 intermediate homes, along with a Community Land Trust (CLT) for low-cost housing. However, the amended proposals drastically reduced affordable housing and scrapped the CLT. Berkeley Homes cited uncertainty over GLA funding, delays in securing planning permission, rising construction costs, and regulatory changes as reasons for the reduction.
Two public consultations were held, reaching 27,141 neighbours. The plans received 2,505 responses: 2,427 objections, 59 in support, and 19 neutral. Southwark Council's Planning Committee had already refused the plans due to insufficient affordable housing and heritage impact.
Campaigners described the battle as 'David and Goliath,' warning that approval would have meant 'gentrification on steroids,' displacing communities and local traders while wrecking Peckham's heritage.
A Berkeley Homes spokesperson previously told the Local Democracy Reporting Service: 'This is a site that has been earmarked for housing for 11 years now. Two previous developers failed to come up with a workable project. We have been working with the council, local residents, and businesses for four years and have sought to accommodate everyone's wishes, as far as possible, along the way, while keeping the project viable. After all this time, effort, and money, if Berkeley is to build homes, we have no other option but to appeal for non-determination.'
