Lewisham Council’s planning committee has approved plans for a £125m regeneration of a housing estate in New Cross, south London.
The council-led project, approved at a strategic planning committee last week, will see the 88 existing homes on the Achilles Street Estate demolished and replaced by five new buildings, comprising 278 homes.
The current estate includes three residential blocks, Azalea House, Fenton House and Austin House, and a terrace of commercial units at ground floor along New Cross Road.
These buildings will be replaced by blocks between four to 16 storeys in height, containing 122 social rent homes, 44 homes for intermediate rent and 112 units for private sale.
The redevelopment, designed by architects Levitt Bernstein, WR-AP and ZCD Architects, will also deliver commercial space, new public green space and a play area.
Residents living on the Achilles Street Estate took part in a ballot on the regeneration plans in 2019, which saw a 92% turnout. At the time, 73% said they were in favour of the redevelopment.
However, a more recent 2025 consultation received 59 responses, of which 14 were objections. Concerns centred on building heights, visual impact, pressure on local infrastructure and the effects of construction on noise and air pollution.
In a report prepared for last week’s committee, planning officers acknowledged that some surrounding properties would experience reduced sunlight and daylight due to the new towers, but concluded that the issues did not constitute sufficient planning grounds to refuse the scheme.
The project will be delivered in three phases to allow for residents to be rehoused in stages.
The landlord’s offer to residents stated that all existing social tenants would be entitled to a “new modern home” on the regenerated estate.
In addition, social rents will remain the same unless tenants are moved into a larger property. Families living in temporary accommodation on the estate will also be offered new homes.
In the first phase, a 16-storey tower block will be constructed, and the residents of one of the existing three-storey residential blocks will be moved there. Phase two will see the demolition of that block, plus the construction of two further towers and the rehousing of all remaining residents.
The final stage will involve demolishing the rest of the estate and the delivery of the final three blocks.
A programme update presented to Lewisham’s housing select committee in November warned that phase three presents “significant viability challenges”. The report recommended moving from direct council delivery to a developer-led approach, secured through a strategic partnership agreement.
Recent projects in the borough have been scrutinised by campaigners from the Lewisham People’s Assembly for undermining the council’s target of 50% affordable homes on all new developments.
In October, councillors approved the £1.5bn redevelopment of Lewisham Shopping Centre, which would include 1,744 homes of which only 16% would be affordable. The following month, it approved a 903-home redevelopment at Deptford Bridge, with a 9% affordable homes offering.
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