Khan calls in developer’s Canada Water masterplan after affordable housing offer slashed to 3%

In his letter to the developer, Sir Sadiq said there were “sound planning reasons” for his intervention, including the “significant impact” the development would have on the implementation of the London Plan.

It means the mayor will hold a public inquiry on the amendment application.

British Land’s original masterplan for the site, approved in 2019, would have delivered 2,815 homes and 4.7 million sq ft of retail, office and leisure space, with 35% of its housing classed as affordable.

But the project was later redesigned. The number of homes increased to 3,700 and its towers grew by as much as 13 storeys.

A viability report by consultancy Quod, lodged with the council in July, said the masterplan’s viability is “extremely challenging” and the policy target of 35% is far in excess of the maximum viable amount.

“The baseline illustrative scheme appraisal indicates that at present the maximum reasonable level of affordable housing is [circa] 3% by habitable room.”

A viability report commission by Southwark Council from lender BNP Paribas challenges some of the assumptions used by Quod, but backs up the consultancy’s conclusions. It finds that additional grant funding, including £39m from the Greater London Authority (GLA) and a £40m “public subsidy”, would only take the viable percentage of affordable housing in the masterplan from 3% to 5.4%.

Helen Dennis, cabinet member for new homes and sustainable development at Southwark Council, said: “We will continue working at Canada Water with the GLA and all parties to get the best deal possible for the people of Southwark. 

“We’re committed to creating more social and affordable housing, building on the new council homes already delivered at Roberts Close.

“The ambition at Canada Water is equivalent to that of a new town, to create a brand new town centre, new jobs, excellent facilities for local residents like the new leisure centre, a new and improved cultural destination in Printworks, and 3,000 new homes contributing to the housing that Southwark needs.”

A spokesperson for British Land said: “We are proud of our progress to date at Canada Water, which has seen the provision of both private and affordable homes, a substantial contribution to local transport improvements, plus the creation of amenities including a new leisure centre for Southwark, as well as hundreds of jobs for local people.

“To continue this positive local contribution and the ongoing transformation of the area, we submitted a Section 73 application in January 2025, which we are now asking the mayor of London to determine.

“Our revised application is a reflection of major regulatory changes and ongoing viability challenges triggered by macro-economic circumstances. Approval of our application will enable additional benefits of the Canada Water masterplan to be realised, including thousands more new homes, modern workspaces, open spaces including a town square and 3.5-acre park, local school funding and space for a new health centre.

“We will now work closely with the Greater London Authority to secure the future of the masterplan’s revised permission.”