Berkeley Homes' revised proposals for the final two phases of the Bermondsey Place scheme on the Old Kent Road could see only 81 affordable homes built out of 1,060 total homes, a sharp reduction from the originally agreed 40 per cent affordable housing provision. Southwark Council's Planning Committee has been recommended to approve the revised plans at a meeting scheduled for October 6, despite the significant decrease.
Revised Proposals and Financial Viability
The new planning application for Phases 2 and 3 proposes cutting on-site affordable housing from 40 per cent to 12 per cent. According to a planning statement, Berkeley Homes argues that the original phases are no longer financially viable and cannot be delivered in their current form. The developer is also proposing reductions in commercial and employment floorspace, smaller buildings, and the removal of one building to increase public realm space.
Phase 1 of the scheme, located behind Asda's Old Kent Road store, is currently under construction and will deliver 285 homes, with 40 per cent on track to be affordable. Construction on Phase 1 began in 2021 but stalled in 2022 due to rising costs attributed to "Brexit, Covid-19 and market forces." It resumed in autumn 2025 after Berkeley Homes secured grant funding from the Mayor of London.
Planning History and Changes
Phases 1, 2, and 3 originally received planning consent from Southwark Council in October 2020. The initial approval covered two sites: the former Malt Street site, a hybrid application for up to 1,300 homes in 12 buildings up to 44 storeys, and Nye's Wharf, which had full permission for 153 homes and 1,193 sqm of commercial floorspace. Berkeley Homes now plans to merge Nye's Wharf with the first scheme, delivering 1,345 new homes overall but reducing the total by 108 homes and cutting commercial and employment floorspace by almost 50 per cent.
If planning permission is granted next week, construction for Phases 2 and 3 would not begin until 2029, with the final building completed around 2044. Of the 81 proposed affordable homes, 56 would be social rented and 25 would be intermediate, with the remainder for private market sale.
Section 106 Agreement and Building Heights
As part of the Section 106 agreement, Berkeley Homes has committed to early, mid, and late-stage reviews. If economic conditions improve over the 16-year construction period, any financial surplus would be split equally with the council to fund additional affordable housing.
The revised plans also reduce the tallest building from 44 storeys to 36 storeys, the second tallest from 39 to 26 storeys, and the third tallest from 27 to 21 storeys. Four buildings would gain an extra storey, while one planned as a 15 and 8 storey block would be reduced to 8 storeys. The final building, Block B12, would be removed and replaced with increased public realm space.
Past Rejections and Current Recommendation
Berkeley Homes has previously attempted to reduce affordable housing in other Southwark schemes, including the Borough Triangle development and the Aylesham Centre in Peckham, but those revised proposals were rejected by the council. Earlier this month, the developer was accused of "pleading poverty" for its Borough Triangle development in Elephant and Castle after submitting a Section 73 application to cut on-site affordable homes from 230 to 60. That application was refused on three grounds, including failing to meet the significant need for social rented and intermediate homes.
Despite this history, planning officers have advised Southwark's Planning Committee to approve the latest plans, although the council has stated it does not take any substantial loss of affordable housing lightly.
