Southwark Council Rejects Berkeley Homes' Housing Proposal Over Affordable Housing Cuts

Overview of the Rejection

On 6 October 2026, Southwark Council made a decisive move by rejecting a proposal from Berkeley Homes for a development of 1,060 homes at Bermondsey Place. This decision came after councillors unanimously agreed that the revised plans fell short of the borough's housing needs, particularly regarding affordable housing.

Significant Cuts to Affordable Housing

One of the primary reasons for the rejection was the drastic reduction in the affordable housing component of the project. Berkeley Homes initially proposed that 40% of the homes would be affordable; however, this figure was slashed to just 12%. Such a reduction raised concerns among the council members about the viability of meeting local housing demands, especially in a borough where affordable housing is critically needed.

Previous Developments and Context

This rejection follows a series of developments in the area. The first phase of the Bermondsey Place project, which is currently underway, aims to deliver 285 homes with 40% designated as affordable. Work on this phase began in 2021 but faced delays in 2022 before resuming in 2025. Additionally, a hybrid planning application for a larger scheme of 1,300 homes was approved back in 2020, indicating that there was previously a more optimistic outlook for housing development in the area.

Broader Trends in London Housing

The situation at Bermondsey is not isolated; it reflects broader trends across London, where many councils are facing similar challenges. For instance, Southwark councillors previously rejected a request from Berkeley Homes to decrease affordable housing in another project at Elephant and Castle, where plans for 892 flats included a significant cut in on-site affordable homes.

In that case, the developer sought to reduce the number of affordable units from 230 to 60, citing rising building costs and regulatory changes. This proposal was also turned down on September 9, highlighting a consistent stance from the council regarding affordable housing commitments.

Economic Pressures Impacting Housing Development

The economic landscape is impacting housing developments across London. For example, in Camden, developers have similarly reduced the number of affordable homes due to economic conditions. Recent approvals in Camden saw the number of affordable units at the O2 Centre reduced from 570 to 330, despite a significant waiting list for social housing in the borough, which numbered 8,380 people as of 2025.

Conclusion

The unanimous rejection of Berkeley Homes' plans in Southwark underscores the ongoing tension between developers and local councils in London regarding affordable housing. As economic pressures mount, the challenge of providing adequate affordable housing solutions remains a critical issue for many boroughs, reflecting a growing crisis in the capital's housing market.