Key Points
- Revised Application Submitted: Berkeley Homes has submitted a revised planning application (Reference 25/AP/2987) for the final two phases of the Bermondsey Place development on Malt Street, off Old Kent Road.
- Significant Reduction in Affordable Housing: The updated proposal offers 1,056 homes, with only 81 designated as affordable (7.7 per cent by unit count, or 12 per cent when calculated by habitable room).
- Breakdown of Tenure: The proposed affordable allocation comprises 56 homes for social rent and 25 for shared ownership, with the remaining 975 units intended for the private market.
- Masterplan Comparison: The earlier masterplan approved in 2020 was publicly presented as delivering 40 per cent affordable housing across the broader scheme.
- Developer Viability Claims: Berkeley Homes stated that the previously approved iterations of phases two and three are no longer viable to deliver under current economic conditions.
- Scale and Height Reductions: The revised design cuts a net total of 37 storeys across the site; the tallest building drops from 44 storeys to 36, two other blocks shrink significantly, and Block B12 has been removed entirely.
- Expanded Public Realm: Omitting Block B12 allows for nearly three acres of publicly accessible open space, alongside new tree planting, play facilities, and pedestrian and cycle links connecting Burgess Park to Old Kent Road.
- Commercial and Industrial Floorspace: The revised application retains commercial (9,515 square feet) and light-industrial space (27,674 square feet), though at lower totals than originally planned.
- Viability Mechanism Included: A Section 106 legal agreement proposes early, mid-stage, and late-stage viability reviews, with any surplus revenue split equally with Southwark Council to fund potential future affordable housing.
- Extended Delivery Timeline: Construction on phases two and three is not projected to start until at least 2029, with overall completion anticipated around 2044.
- Planning Committee Decision Pending: Southwark Council planning officers have recommended approval, with the application due before the Planning Committee on Tuesday 6 October.
Southwark (South London News) October 1, 2026 – Southwark Council’s Planning Committee is scheduled to consider a revised planning application on Tuesday 6 October for the final phases of the major Bermondsey Place regeneration scheme, where proposed affordable housing levels have seen a substantial reduction compared with previous commitments. As reported by local media outlets covering the Southwark planning process, developer Berkeley Homes is seeking approval for an updated submission (planning reference 25/AP/2987) covering phases two and three of the Malt Street development. Under the revised documentation, the development would deliver a total of 1,056 residential units, but only 81 of these would be delivered as affordable tenure. Measured by unit count, this represents roughly 7.7 per cent of the total housing yield, though the applicant’s planning documents express this figure as 12 per cent when calculated by habitable room to account for variations in property sizes. Southwark Council planning officers have formally recommended that councillors grant permission for the revised scheme, although no final determination has been made ahead of the upcoming committee meeting.
Why Has the Bermondsey Place Masterplan Been Revised?
According to details provided within the planning application, Berkeley Homes maintained that the previously permitted scheme for phases two and three is no longer deliverable under present macroeconomic and construction sector conditions. Phase one of the broader Bermondsey Place masterplan, which received initial planning permission in 2020, is currently under construction. However, the developer outlined that rising material costs, economic shifts, and overall financial viability pressures have necessitated changes to the layout, scale, and tenure balance of the remaining sections.
The original scheme was publicly presented as providing 40 per cent affordable housing across its overall blueprint. Under the newly submitted details, the 81 proposed affordable homes in the final two phases would consist of 56 social rented properties and 25 shared ownership units. The remaining 975 properties are earmarked for open-market sale.
Beyond adjustments to housing tenure, the revised scheme incorporates a net reduction of 37 storeys across the architectural composition compared with the 2020 masterplan. The maximum height on site has been scaled back, with the tallest proposed tower reduced from 44 storeys to 36. Two other primary blocks have seen height reductions from 39 to 26 storeys and from 27 to 21 storeys respectively. Conversely, selected smaller elements will gain an additional floor, while a combined 15- and eight-storey structure has been streamlined into a uniform eight-storey element.
How Will the Physical Design and Commercial Space Change?
A notable structural alteration in the updated submission is the complete removal of Block B12 from the design plan. Planning documents indicate that dropping this building provides additional ground-level area to expand publicly accessible open space. In total, the application incorporates almost three acres of green space, alongside public realm enhancements, play areas, and new tree plantings. The scheme features designated walking and cycling routes intended to improve connectivity between Burgess Park and Old Kent Road. Designed as a car-free development, the project incorporates 1,902 dedicated cycle parking spaces.
Commercial and light-industrial allocations have also been recalibrated downward from original proposals. The updated scheme includes approximately 9,515 square feet of commercial space alongside 27,674 square feet reserved for light industry. Southwark Council planning officers noted in their assessment that preserving this balance of commercial and light-industrial activity remains a key consideration in sustaining the local employment ecosystem along the Old Kent Road corridor.
To address potential changes in financial conditions over the long term, the proposed legal framework includes early, mid-stage, and late-stage viability reviews. Should market conditions improve during the build period to generate a financial surplus, the mechanism dictates that 50 per cent of any excess would be allocated to Southwark Council to secure off-site or additional on-site affordable housing. Planning officers emphasize that this mechanism represents a prospective financial review rather than a firm guarantee of extra affordable units.
The build timetable for the remaining phases spans several decades. Construction work on phases two and three is not anticipated to commence before 2029, with final completion projected around 2044.
Background of the Particular Development
The Old Kent Road Opportunity Area has long been designated by Southwark Council and the Greater London Authority as a primary zone for intense urban regeneration, high-density residential development, and commercial workspace renewal. The site on Malt Street, now branded as Bermondsey Place, forms a key land parcel within this wider masterplan area, transitioning former industrial, warehouse, and low-density commercial land into mixed-use neighborhoods.
In 2020, initial comprehensive planning permission was secured for the multi-phase redevelopment of the Malt Street location. The masterplan was originally framed around central London policy targets aiming for 35 to 50 per cent affordable housing on major brownfield developments, backed by the strategic vision to link Burgess Park with new green infrastructure corridors running toward Old Kent Road. Phase one was initiated under these baseline parameters and remains active on site.
However, since the initial approvals were granted, the broader UK property development sector has experienced compounding economic pressures, including sharp interest rate increases, elevated building material inflation, heightened labor costs, and evolving regulatory standards regarding building safety and energy efficiency. These factors have prompted developers across London to re-evaluate approved schemes, frequently citing viability challenges to negotiate lower affordable housing requirements or reduced building heights.
Prediction: How This Development Can Affect the Local Community and Housing Sector
If Southwark Council’s Planning Committee accepts the officer recommendation and approves the revised plans on 6 October, the decision will have distinct ramifications for local residents, housing applicants, and the broader community along the Old Kent Road corridor.
- Impact on Housing Applicants and Local Renters: The reduction from a headline 40 per cent affordable housing figure to 81 total affordable units (7.7 per cent by unit count) substantially diminishes the immediate supply of social and intermediate housing generated by this site. For families and individuals on Southwark’s housing waiting list, the drop to 56 social rented units means fewer local homes delivered at low-cost rent levels relative to earlier expectations.
- Impact on Local Residents and Urban Environment: Neighboring residents will see a notable alteration in the visual scale of the development. The net reduction of 37 storeys and the lowering of peak heights from 44 to 36 storeys reduce the overall vertical density of the skyline. Furthermore, the complete removal of Block B12 increases ground-level open space to nearly three acres, providing improved pedestrian connectivity, new play infrastructure, and improved green links between Burgess Park and Old Kent Road.
- Impact on the Local Economy and Transport: The retention of over 37,000 square feet of combined commercial and light-industrial workspace ensures that employment land remains integrated into the site, supporting local light industry and service businesses, albeit at lower capacity than previously planned. The car-free nature of the development, supported by 1,902 cycle spaces, will limit localized vehicle traffic additions while increasing reliance on existing pedestrian, cycling, and public transport networks.
- Long-Term Financial and Planning Precedents: Because full completion is not anticipated until roughly 2044, the multi-stage viability review mechanism leaves open the possibility—though not a certainty—that future market improvements could yield additional financial contributions for council housing. However, approval of a 7.7 per cent affordable housing baseline on a major strategic site may set a visible benchmark for how economic viability arguments are weighed against council affordable housing targets in subsequent regeneration decisions.
