Southwark rejects Berkeley's 1,060-home Old Kent Road plan

Southwark councillors have refused Berkeley permission for revised plans delivering 1,060 homes in south London, rejecting an affordable housing cut from 40% to 12% that the house builder argued was necessary to make the scheme viable.

The decision on Tuesday went against officers' recommendation. The revised Bermondsey Place proposals covered phases two and three of the Old Kent Road development, which Berkeley had reworked to tackle rising costs and avoid a repeat of the delays that stalled its first phase.

What did the revised scheme include?

The application proposed:

• Eight buildings rising from six to 36 storeys
• 880 sq m of flexible commercial space
• 2,571 sq m of light industrial accommodation

Berkeley had cut the tallest tower from the previously approved 44 storeys and reshaped other blocks to soften their impact on neighbouring estates.

How much affordable housing was on offer?

The revised affordable housing offer comprised 56 social rented and 25 intermediate homes. A proposed three-stage viability review could have increased provision if profitability improved.

Councillors rejected that trade-off. The refusal keeps the consented 40% affordable housing requirement in place for future applications on the site.

Why did Berkeley rework the scheme?

The 285-home first phase behind Asda's Old Kent Road store remains under construction, with 40% affordable housing planned. Work began in 2021 but stalled in 2022 amid rising costs. Construction resumed in autumn 2025 after Berkeley secured funding from the Mayor of London.

Berkeley reworked phases two and three specifically to avoid a repeat of those delays.

Where did Berkeley succeed this week?

The setback contrasts with Berkeley's planning success in north west London, where Brent Council approved another 505 homes at its Grand Union regeneration.

That consent covers three buildings designed by Sheppard Robson, rising to 29 storeys beside the development's Linear Park. The tallest block will feature pale and green precast concrete cladding and a crescent-shaped crown, with a residents' pavilion opening onto the park.

The latest Grand Union consent follows approval earlier this year for 168 social rented homes in phase 4B. Berkeley has completed around 1,000 homes at the former Northfields Industrial Estate, which is being transformed into a 3,350-home canalside neighbourhood.

The Southwark refusal leaves Berkeley weighing whether to resubmit revised proposals for Old Kent Road or appeal — while its Grand Union pipeline continues to deliver.