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Developer halves affordable housing in second phase of Lewisham scheme after £25m train station cost
A developer has halved the number of affordable homes being provided on a south London site after agreeing to pay £25m for a new train station.
The Renewal Group has reduced the number of homes slated for phase two of its 3,500-home New Bermondsey development in Lewisham.
Affordable housing is being cut from 35% to 17.58% for the phase – a drop from 199 to 99 homes – because of Renewal’s updated strategic transport contribution to a new Overground train station on the site.
The affordable housing figures remain unchanged for the four other phases, according to a report presented to Lewisham’s strategic planning committee in July.
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“In the context of a new and substantial station contribution, it has been necessary to review this position to ensure the scheme remains deliverable with the maximum level of affordable housing on site,” a report from Lewisham Council’s strategic planning committee said.
Renewal received planning permission in 2022 for the 30-acre development project, proposed for the land surrounding Millwall Football Club.
The new station at Surrey Canal Road, which will be between Surrey Quays and Queens Road Peckham, was initially meant to be funded by Transport for London (TfL) using money from the Housing Infrastructure Fund.
TfL said that rising inflation and increased costs had led to other projects being prioritised ahead of the Surrey Canal Road station.
Christian Fowler, head of investment delivery planning for public transport at TfL, said: “TfL remains committed to delivering a new station at Surrey Canal Road and welcomes the £25m the developers, Renewal Group, are contributing to help make that possible.
“We remain in discussions with government and the London Borough of Lewisham about the potential need for additional funding to support this.”
In the initial agreement, Renewal had consented to contribute towards the delivery of the station if necessary.
Because the train station is of “high strategic importance”, Renewal agreed to make a total station contribution of £25m.
The report said the new funding had been “robustly interrogated” by the council’s consultants, Gerald Eve, and the Greater London Authority, and that council officers were “satisfied that the affordable housing remains the maximum that can viably be provided at the current time”.
In June, Inside Housing reported that Lewisham Council had created a housing delivery action plan after failing to meet its targets.
According to a council report, Lewisham failed the Housing Delivery Test by delivering 386 homes in 2021-22, instead of its target of 1,667.
In December last year, the council revised its development programme amid “challenging” economic conditions.
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