Large house builder claims developers can ‘no longer invest’ in London after development with 12% affordable homes rejected for second time

The planning inspector at Southwark Council accepted that Berkeley’s proposals to replace the 1980s shopping centre would help to rejuvenate the area, bring “social and economic benefits” and ease the “acute” housing shortage.

The planning inspector said: “However, in this case such benefits do not outweigh the harm to the relevant designated heritage assets important to the area.

“Their fenestration and overall elevational composition would not tie in successfully with surrounding historic buildings.

“The proposed façades would appear uninspiring, overly uniform and disconnected from the surrounding positive ornate and varied qualities of the closest nearby buildings.”

Rob Perrins, executive chair at Berkeley, said: “How can we be allowed to build next to world heritage assets like Tower Bridge, but not here? This is why developers, including Berkeley, can no longer invest in new London sites and the housing crisis continues to deepen.”

Berkeley has said it will explore “all options open to us”, including potentially taking the matter to the High Court.

Sarah King, a Labour councillor and leader of Southwark Council, said the result marked “a great day” for Peckham.

She said: “We shared [local residents’] concerns and strongly argued at the public inquiry that the scheme was poorly designed and our position has been vindicated.”

Victor Chamberlain, Southwark Liberal Democrat group leader, also described the decision as “a major victory for local residents and campaigners across Southwark”.

He added: “Southwark Liberal Democrats stood with the community throughout the campaign against the Aylesham redevelopment, joining protests and backing residents’ objections.

“The planning inspector’s decision sends a clear message to the mayor and government: communities across Southwark will not simply accept developments with reduced affordable housing and weak public benefits without challenge.

“It also shows that councils and communities can stand up to developers and demand better for local people and the future of our neighbourhoods.”

The Aylesham Centre was opened in the summer of 1988 by Princess Margaret. It is home to 15 retailers and restaurants including JD Sports, Morrisons and Nando’s.

Berkeley acquired the site in May 2021 from a joint venture between BlackRock, the world’s biggest asset manager, and Tiger Developments, a London-based residential developer. The pair had first begun discussions with the council about redeveloping the shopping centre in 2017.