Merton OKs 626 Mitcham Homes: Zero Affordable

Key Points

• Merton Council approved the third round of plans for the Mitcham Gasworks redevelopment, increasing the scheme to 626 homes.
• The development will not include any affordable housing units, despite previous schemes promising up to 35% affordable homes.
• Developers cite viability concerns as the reason for removing affordable housing and instead proposing a 100% private rented scheme.
• The project is promoted as the largest new housing development in Mitcham for a generation.
• Critics have called the omission of affordable homes “unconscionable” given the scale and significance of the project.
• Simon Lewis, Planning and Development Director for St William, explained to the Development and Planning Committee that earlier schemes were no longer deliverable.
• Viability in planning terms refers to the financial feasibility of the development, balancing costs, obligations such as affordable housing, and returns for developers and landowners.

What is the Mitcham Gasworks redevelopment plan?

Merton Council recently signed off on the third iteration of plans for the Mitcham Gasworks redevelopment, South London, with an updated proposal to build 626 homes on the site. This development has been heralded as the largest new housing project in Mitcham for a generation. However, notably, this revised plan does not include any affordable housing units, marking a significant departure from earlier plans which incorporated affordable housing commitments.

Why does the development include no affordable homes?

The removal of affordable housing from the scheme’s latest iteration stems from concerns over viability, the financial feasibility of the development. According to Simon Lewis, Planning and Development Director for St William—the developers behind the project—the initial scheme, which included 35% affordable homes approved in July, is no longer deliverable. At the Development and Planning Committee meeting on 27 November, Lewis explained that the decision was based on recent viability assessments which showed that including affordable housing was no longer financially viable. As a result, the developers are proposing a 100% private rented scheme instead.

What does ‘viability’ mean in this context?

“Viability” in planning terms means whether a development project can generate sufficient financial value to cover all associated costs—land acquisition, construction, infrastructure, and crucially, planning obligations like affordable housing—while still delivering an acceptable return to both the developer and the landowner. If these financial conditions are not met, a development is deemed unviable, prompting adjustments such as cutting affordable housing to ensure the project proceeds.

How have critics responded to the lack of affordable homes?

The omission of affordable housing has been met with criticism from local stakeholders and housing advocates. Given that the project is promoted as the largest new housing development in Mitcham in decades, critics argue that the lack of any affordable units is “unconscionable.” Affordable housing is often seen as a vital component in addressing housing shortages and ensuring social equity, particularly in areas like South London where housing affordability is a significant concern. Critics contend that excluding affordable homes undermines these goals at a time when demand for such housing is acute.

What were previous plans for the Mitcham Gasworks site?

An earlier scheme for the development, approved in July, included 35% affordable housing, signalling a commitment to mixed-tenure housing. However, as Simon Lewis noted, that plan is no longer deemed deliverable financially. The current plans have expanded the total number of homes to 626 but pivoted away from affordable units on the grounds that doing so compromises the project’s viability.

What is the significance of this development for Mitcham?

The Mitcham Gasworks redevelopment is positioned as a landmark project for the town, being the largest housing development planned in Mitcham for a generation. It has the potential to dramatically alter the residential landscape, providing hundreds of new homes. However, the removal of affordable housing from the scheme has raised questions about the social inclusiveness of the development and the broader housing strategy for the area.

What do developers say about the future of the project?

Simon Lewis of St William indicated to the Development and Planning Committee that the current proposal reflects a realistic assessment of economic conditions affecting the development’s feasibility. The decision to focus on a 100% private rented scheme, according to Lewis, is a strategic move to ensure the project’s delivery amid financial constraints.

What are the implications for local residents and housing policy?

The absence of affordable homes from what is touted as a major development complicates efforts to increase affordable housing stock in South London. Housing advocates, local officials, and community members may see this decision as a setback in addressing housing needs, especially for lower-income households. The debate underscores ongoing tensions in urban development between financial viability for developers and the social responsibility to include affordable housing in large projects.

The Mitcham Gasworks redevelopment exemplifies contemporary challenges in urban planning and housing delivery, balancing economic realities with community needs and policy expectations. The controversy surrounding the exclusion of affordable housing highlights the importance of continued scrutiny and dialogue as these large-scale developments proceed.