Government kick-starts Old Kent Road development with Berkeley Homes loan
A stalled development by Berkeley Homes round the back of Asda in the Old Kent Road is to be kick-started with a loan from the Government.
Planning permission was granted to Berkeley Homes in 2020 for up to 1,300 homes on the site in 12 new buildings up to 44 storeys tall.
The plot of land - to the rear of Asda's Old Kent Road store - was previously occupied by buildings associated with the disused Surrey Canal.
Last autumn the developer's agent wrote to Southwark Council explaining why there had been no progress: "In May 2022, Berkeley Homes stopped the construction of the Malt Street Regeneration [due] to a number of external factors that had an impact on the viability of the scheme such as Brexit, Covid-19 and market forces.
"These influences have had a profound effect on the deliverability of development schemes across London and the challenges facing the Malt Street Regeneration were too great to accommodate."
Berkeley applied to the council to change the phasing of the affordable housing in the scheme by pushing some of the proposed intermediate housing into the third phase of the development.
Now the development - known as Bermondsey Place - is to share in a £125 million loan to Berkeley Homes from the Government's regeneration agency Homes England.
Berkeley Homes has been marketing the development - which is mostly in SE15 but straddles the SE1 border - as 'Bermondsey Place SE1' even though it is in the historic parish of Camberwell.
A sales and marketing suite for the new homes has been built close to the Asda store.
Homes England chief executive Peter Denton said:
Partnerships between organisations, alongside an unwavering will to drive positive change for communities, are essential if we are to create well-designed homes in well-designed, regenerated places for people to live, work and grow.
By pooling expertise and resource through collaborative partnerships we can break down the barriers that are stopping brownfield sites like these from coming back to life with a new, sustainable purpose, ultimately creating better places, more affordable places, where all of a community can live and thrive.
The Deputy Mayor of London for Housing and Residential Development, Tom Copley said:
I’m delighted that 8000 new homes are being delivered in Newham and Southwark, with 40 per cent of these set to be genuinely affordable on the two sites with planning permission.
This partnership between the GLA, Berkeley and Homes England marks another important step forward in our mission to utilise Brownfield land to deliver more high-quality, affordable new homes in the capital. The new public green spaces and fantastic transport links will have huge benefits for future residents and the wider community – helping to build a better, fairer, more prosperous London for all.
Rob Perrins, Chief Executive, Berkeley Group, said:
We are delighted to be working with the GLA, Homes England and the London Boroughs of Newham and Southwark to bring forward much needed private and affordable homes on brownfield land. This is an important step towards accelerating delivery on these complex sites and we’re very proud to be part of this innovative partnership.
