A Labour-controlled council in Southwark has expressed delight after plans to construct 867 new homes in Peckham were rejected by the Planning Inspectorate, a decision that has ignited a fierce debate over the capital's housing shortage.
Background of the Development
The proposal, submitted by Berkeley Homes, aimed to redevelop the Aylesham shopping centre and market site in south London. Initially, the project included 35 per cent affordable housing, but this was reduced to 12 per cent in December 2024, sparking widespread opposition.
Community and Celebrity Opposition
Residents, local politicians, and celebrities such as comedians Nish Kumar and James Acaster rallied against the development. The duo performed at a comedy fundraiser organised by the Aylesham Community Action group, raising over £46,000 to support the campaign against the project.
Planning Inspectorate's Decision
The Planning Inspectorate rejected the scheme, citing concerns over 'heritage assets' and stating that the proposed apartment blocks would be 'out of scale, visually intrusive and unduly diminishing' to the area.
Council's Reaction
Southwark Council leader Sarah King described the decision as 'a great day for Peckham', thanking the community for their opposition. However, the council's stance has drawn criticism, given that over 18,000 people are on Southwark's housing waiting list and 22 per cent of residents live in poverty.
Backlash and Criticism
Online commentators and housing campaigners have lambasted the decision. Sam Dumitriu of Britain Remade noted that Labour was elected on a pledge to build 1.5 million homes, yet its councillors blocked over 850 homes on brownfield land. Fred de Fossard from the Prosperity Institute argued that there are no 'heritage assets' worth protecting at the Aylesham Centre, calling for national government intervention.
Build for Britain, a centre-right housing campaign group, accused Labour of preferring 'zero homes to 874', highlighting that Southwark achieved only 43 per cent of its housing completion target in 2024-2025.
Supporters of the Decision
Green councillor Reginald Popoola praised the ruling, stating that building affordable homes, not luxury flats, is the only way to tackle the housing crisis. Local residents also voiced support for preserving the area's character.
The Planning Inspectorate's full report will be reviewed by the council before any next steps are taken.
