Plans have been in the works to redevelop the Aylesham Centre in Peckham for over a decade. However, there was a significant decision recently that will have a huge impact on the project. Let’s have a closer look, then you can speak to us if you want some help with investment properties in Southwark.
Proposals
The Aylesham Centre was first identified as a potential development site in 2014. It was then bought by Berkeley in 2021 with an eye on delivering the biggest redevelopment in the area for generations. The plans saw the light of day in 2024, with proposals to demolish the 1980s shopping centre. In its place they would build 877 new homes, as well as new commercial and leisure space.
Interestingly, the original plans would have delivered 35% affordable housing (185 social rent and 85 intermediate homes). However, a second version had just 12%. Berkeley said they had to change the plans in response to “rising costs”. As a result, the redesign was for 867 homes, with just 77 affordable (50 social rent and 27 intermediate).
Berkeley applied for planning permission in July 2024. A year later, Southwark Council chose to block them, arguing there wasn’t enough affordable housing and the heights of the new blocks (up to twenty stories) would damage the skyline forever. However, the developer had already appealed the lack of decision, asking the Planning Inspectorate to decide whether to approve the plans.
Decision and response
The Planning Inspectorate recently made their decision; they chose to reject Berkeley’s plans. Critically, they said that the benefits of the redevelopment do not outweigh the damage it will cause to Peckham. If you’re thinking about investment properties in Southwark, rely on us.
Talking about specific reasons for the decision, the planning inspector had several concerns. Notable is the amount of affordable housing failing to meet the allocation requirement for the site. On top of that, the design would cause “harm to the local townscape”, including a nearby conservation area. There would also be an impact on small businesses in the area.
Local councillors and campaigners against the redevelopment are very happy. Councillor Victor Chamberlain said it is “a major victory” that shows stakeholders “can stand up to developers” to protect local people and neighbourhoods.
On the other hand, Berkeley was very critical of the decision. Executive Chair Rob Perrins said it shows the “extreme uncertainty” and fundamental issues at the moment in the planning system. He pointed to this as a reason why developers are struggling to invest in London and why housing delivery is so low. Finally, he said they will explore all options available to them for Aylesham Centre.
Discuss investment properties in Southwark with us
Southwark has become one of the most popular (and expensive) parts of South East London in the last decade. It’s an area where people want to live, particularly locations like Peckham. Crucially, it has that cool factor, lots to do, and is now a hotspot for tech businesses.
If you’re looking at investment properties in Southwark, you can rely on Finefair Ltd. We’re a flexible business specialising in guaranteed rent, asset management, HMOs, and more. When you work with us, you can have peace of mind about your finances and assets. Additionally, we can adapt if you change your strategy.
So, get in touch today and tell us what you need.
