Southwark Council's Planning Committee has refused planning permission for a 38-home development on Rye Lane, Peckham, but the final decision now rests with the Planning Inspectorate after the developer appealed due to a missed deadline. The committee's unanimous refusal on August 10, 2026, came despite officers recommending approval, with members citing the lack of affordable housing and poor accommodation quality, particularly for wheelchair users.
Council refusal and appeal timeline
The application for 269 to 275 Rye Lane and 1A Philip Walk was referred to the Planning Inspectorate before the committee meeting because the council had missed its decision deadline of March 31, 2026. Delays were partly due to the May local elections, which halted planning committee meetings from March to June 2026. The appeal hearing is scheduled for August 25, 2026.
At the meeting, Cllr Richard Taylor, Chair of the committee, stated: "The deficiencies in floorspace, outlook, daylight, privacy, noise exposure... and accessibility collectively result in an unacceptable standard of accommodation, particularly for future wheelchair users." He added that the development "fails to demonstrate that the proposed single aspect dwellings would achieve adequate passive ventilation, daylight privacy and overheating resilience."
Affordable housing and viability concerns
The proposals did not include any on-site affordable housing, a major point of contention. Cllr Taylor noted the scheme fails to deliver a 35 per cent affordable housing contribution, resulting in an "unacceptable loss of opportunity" to address Southwark's acute housing need. The council's housing waiting list currently has over 18,000 households, and 93 per cent of households in Southwark require social or intermediate housing.
Planning officers explained that the 35 per cent requirement could not be met due to "demonstrated viability constraints." The developer had contacted 27 housing associations, but none expressed interest in acquiring on-site affordable housing. A financial viability assessment submitted by the developer concluded a £6.17 million deficit, though an independent review for the council found the scheme more viable, with a reduced deficit of £1.85 million.
The developer had previously offered a £1 million payment in lieu of affordable housing but withdrew it due to the deficit. The offer remains in the draft Section 106 agreement, and the Planning Inspector will decide if the payment is necessary.
Developer's arguments and next steps
Aaron Henecke, Associate Director of Hybrid Planning & Development, defended the scheme: "The benefits of the development are many, from the delivery of 38 new homes on a brownfield site to the substantial improvements to townscape biodiversity, open space and drainage." He emphasised that the council lacks a five-year housing supply and that construction could start within a year if approved, ensuring timely delivery of homes.
Despite officers' recommendation and the developer's arguments, the committee refused the plans. The Planning Inspectorate will now determine the outcome at a hearing later this month. The proposal includes 38 flats—14 one-beds, 17 two-beds, and seven three-beds—across two blocks of five and six storeys, plus 152 sqm of commercial floorspace on Rye Lane.
