Social rent permissions switched to affordable under Section 106 deal on 2,100-home brownfield scheme
A developer has been given permission to switch 166 homes in east London from social rent to affordable rent as part of a new Section 106 agreement for the huge brownfield site.
Newham Council granted St William Homes, a subsidiary of Berkeley Group, planning approval for 2,100 homes at a Victorian gasworks in Bromley-by-Bow last year on the condition that 7.5% would be for social rent.
However, the new Section 106 agreement for the scheme allows St William to provide a minimum of 8% of the homes across the site as “affordable housing”.
The agreement defines affordable housing as London Affordable Rent or social rent, or a combination of both. Social rent is calculated via a formula that takes local incomes and property values into account, whereas affordable rent is set at up to 80% of local private rents.
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Analysis by Inside Housing from 2023 found that across London, affordable rent is on average 49% more expensive than social rent.
Phase one of the Bromley-by-Bow gasworks development contains a total of 632 homes. St William will provide 83 affordable homes, alongside 549 for open market sale.
When initially approving the development last year, Newham Council welcomed St William’s plans to build social rented homes rather than affordable rent.
“The delivery of affordable homes within the first phase of the development is welcomed, as is the delivery of ‘genuinely affordable’ social rental units,” the council’s planning report said.
The site’s seven Grade II-listed gasholders will be restored and integrated into the homes through a £72m investment.
As well as building more than 2,150 homes, the plans will make the site publicly accessible for the first time in 150 years.
The Bromley-by-Bow masterplan, designed by architecture firm RSHP in collaboration with Gillespies, includes 13 separate residential buildings, several of which will sit within the existing gasholder frames. The programme will also include 30,000 sq ft of commercial space.
Dean Summers, managing director of St William, said: “This is one of the most challenging brownfield sites in the country and transforming it into thousands of sustainable, well-connected homes and a publicly accessible 4.2-acre riverfront park was always going to require a unique, collaborative solution.
“It is a testament to our brilliant partnerships with Historic England and the London Borough Newham and the invaluable input we have received from residents that we have reached this milestone and that we move one step closer to realising this site’s enormous potential.”
St William was set up in 2014 as a joint venture between Berkeley and National Grid to build homes on redundant gas sites.
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