The proposed redevelopment of Lewisham Shopping Centre is one of the biggest projects in South London. The huge £1.5bn project would transform the area, but it is encountering various hurdles. Let’s have a closer look here, examining how a single old office building is causing significant problems. Then, if you want some help with property investment in Lewisham or other areas in London, including guaranteed rent, you can trust us.

Approval

Landsec’s proposals for the redevelopment got approval from Lewisham Council in October 2025. They said they have spent a long time on the masterplan for the site, consulting thousands of local people and stakeholders. The goal is to ensure they maximise the benefits.

The project would be massive for the area. Critically, it includes delivering 1,700 new homes (20% affordable). There would be developments of student housing and co-living units too. Plus, it would create new retail space to replace all of the current floorspace in a new, modern development. There would also be a new music/arts venue, a park, and a new home for Model Market, creating new amenities and community value.

However, while the plans got permission, Landsec cannot proceed with construction until they own all of the land. The big issue here is Lewisham House. The developer owns the freehold for the property, but a long-term lease is held by LHN1. They actually have their own plans for the site, throwing a spanner in the works. Speak to us about property investment in Lewisham, guaranteed rent, and more.

The issue

Landsec is asking Lewisham Council to use their Compulsory Purchase powers to obtain the lease for Lewisham House. While the local authority said they will act, even approving to use the powers in principle in January 2026, new Mayor Liam Shrivastava said there isn’t a CPO application on his desk at the moment. Notably though, he did state that “it is a scandal” such a big building has been vacant for a long time.

As we said, a big issue here is LHN1 also has plans for Lewisham House. They objected to Landsec’s plans in October. Critically, they have secured planning permission for schemes in the past, albeit not making any progress since then. They said they are currently considering their options, including the potential to convert the building into flats and plans for 319 co-living units.

Local campaigners Save Lewisham Shopping Centre are also encouraging a rethink of the redevelopment. Significantly, they are demanding Lewisham Council don’t progress with the CPO for Lewisham House. They have concerns about the amount of affordable housing the project will deliver, criticising the lack of three and four bedroom family homes. The housing mix is something to keep in mind if you are considering property investment in Lewisham.

What will happen next?

We’ll have to wait and see what happens next here. Landsec said they can’t proceed without securing Lewisham House; it’s a key element of phase 1b of the masterplan. They need help from the council, but may need to re-think their plans to get it. Significantly, Mayor Shrivastava said they want to make the most of developments to maximise the amount of social housing.

Ask us for help with property investment in Lewisham

Finefair Ltd knows how lucrative properties can be. The right assets in great areas can earn investors a lot of money, either from sales or rental. There are numerous things to think about though, including what type of homes to choose. If you do want to become a landlord, it’s also vital to consider the responsibilities, risks, and costs.

We’d be happy to assist if you need any help. We’ve got experience with property investment in Lewisham and other parts of London. You can rely on us for excellent services like guaranteed rent and portfolio management. So, get in touch today.