London council backs sale of site to developer for £80m MMC-led scheme

Weston will also use components produced in its Braintree-based factory in the homes, with materials “predominantly produced” in the UK.

The sale is part of a wider regeneration project for the Folgate Estate site and Old Kent Road. Southwark’s plans so far include building 20,000 new homes and two new tube stations.

Helen Dennis, cabinet member for new homes and sustainable development at Southwark Council, said: “The redevelopment of the Folgate site will be another positive step in our efforts to renew the whole Old Kent Road area, delivering the genuinely affordable homes, green spaces and infrastructure that we need.

“I’m really excited to be moving forward with Weston Homes on a plan which will deliver 200 new homes, with 50% being much-needed affordable housing and at least half of those being social rent – vital for those residents who are on Southwark’s housing waiting list.”

An existing industrial building will also be refurbished to provide 30,000 sq ft of commercial space at the site, with the potential for it to be used as a new healthcare space by NHS South East Integrated Care Board.

Bob Weston, chair of Weston Group, said: “Today’s decision shows the council’s clear support behind our competitive offer for the regeneration of the Folgate site. We look forward to working with Southwark Council in the months and years to come.”

Southwark Council recently surveyed 76 stock-owning local authorities and found that 67% risk being unable to present a balanced Housing Revenue Account budget for the 2029-30 financial year.

Kieron Williams, leader of Southwark Council, said at the time that the council had had to pause its homebuilding programme “on a number of sites”.