Revised plans for Berkeley’s 1,060 south London homes have been refused following Southwark councillors’ rejection of an affordable housing cut that had aimed to increase the scheme’s viability.
In an effort to combat rising costs and avoid further delays, Berkeley had proposed reworkings of phases two and three for their Bermondsey Place development. However, against officer recommendation, councillors refused their proposal to reduce affordable housing from 40% to 12%.
Berkeley’s plans included eight buildings ranging from six to 36 storeys, together with 880 sq m of flexible commercial floorspace and 2,571 sq m of light industrial space.
Compared with the previously approved scheme, the developer reduced the height of the tallest tower from 44 storeys and redesigned several other buildings to lessen their impact on neighbouring estates.
The updated affordable housing proposal featured 56 homes for social rent and 25 intermediate units, while a three-stage viability review mechanism offered the potential for additional affordable homes if the scheme’s profitability increased.
The first phase of the project, comprising 285 homes behind Asda’s Old Kent Road store, is already under construction and is set to deliver 40% affordable housing.
Construction began in 2021 but paused the following year as rising costs hit viability. Work restarted in autumn 2025 after Berkeley secured financial backing from the Mayor of London.
The refusal marks a contrast to Berkeley’s recent planning success in north-west London, where Brent Council this week approved a further 505 homes at its Grand Union regeneration project.
That scheme will deliver three Sheppard Robson-designed residential buildings of up to 29 storeys overlooking the development’s Linear Park.
The tallest of the three blocks will be distinguished by pale and green precast concrete façades and a curved crown, while a residents’ pavilion will provide direct access to the park.
