Southwark Council's Planning Committee A has approved a major redevelopment of Bermondsey Place, granting permission for 1,060 new homes but significantly reducing the provision of affordable housing from 40% to 12%.

The decision, made at a meeting on Tuesday, October 6, 2026, allows for the demolition of existing buildings on Malt Street and their replacement with eight new buildings ranging from six to 36 storeys in height. The development will also include commercial and light industrial spaces.

Architectural rendering of the proposed Bermondsey Place development, showcasing modern buildings, landscaped public spaces, and people enjoying the area.
Architectural rendering of the proposed Bermondsey Place development, showcasing modern buildings, landscaped public spaces, and people enjoying the area.Source: Planning Committee (Major Applications) A papers, 6 October 2026

Affordable Housing Reduction

A key point of contention during the meeting was the substantial decrease in affordable housing. The original consent for the site stipulated 40% affordable housing, but the applicant cited challenging economic conditions and increased costs for the reduction in Phases 2 and 3. Specific factors mentioned include increases to finance costs with the Bank of England increasing the base rate of interest, inflation, build cost inflation in part linked to geopolitics, lack of progress in the values for flatted residential homes, the new Gateway 2 and Gateway 3 process as part of the Building Safety Act which would add delays and the introduction of the Building Safety Levy which is due to be implemented in Autumn 2026.

Despite the reduction, the committee noted that the first phase of the development, currently under construction, is delivering 40% affordable housing. Phase 1 of the development will deliver 285 homes, of which 114 are affordable. Across all three phases, the aggregate affordable housing provision will be a minimum of 17.9%. This equates to a total of 363 affordable homes, comprising 264 social rented homes and 99 intermediate homes.

A three-stage review mechanism (early, mid, and late) will be included in the Section 106 agreement to allow for potential increases in affordable housing if the scheme's profitability improves.

A 3D rendering illustrating the proposed buildings at Bermondsey Place, Phase 2 and 3, with varying heights and color-coded sections indicating different tenures and uses.
A 3D rendering illustrating the proposed buildings at Bermondsey Place, Phase 2 and 3, with varying heights and color-coded sections indicating different tenures and uses.Source: Planning Committee (Major Applications) A papers, 6 October 2026

Design and Public Realm Improvements

The approved plans include significant public realm improvements, such as a new linear park along the historic Surrey Canal alignment and a central square. The tallest buildings have also been reduced in height compared to the extant consent.

An artist's impression of the proposed Bermondsey Place development, showing modern apartment buildings with balconies, a pedestrian walkway with trees and lighting, and people enjoying the public space.
An artist's impression of the proposed Bermondsey Place development, showing modern apartment buildings with balconies, a pedestrian walkway with trees and lighting, and people enjoying the public space.Source: Planning Committee (Major Applications) A papers, 6 October 2026

Concerns regarding the impact on heritage assets were discussed, with officers concluding that while some harm was identified, it was outweighed by the wider regeneration benefits. The development is identified as causing less than substantial harm to the setting of several heritage assets, including the Glengall Road Conservation Area and listed buildings within it, as well as the Kentish Drovers and Bird in the Bush Conservation Area. The harm to these areas is considered low to middle in extent. No harm was identified to the Livesey, Peckham Hill, or Trafalgar Avenue Conservation Areas. For statutorily listed buildings and structures, the harm is generally considered low or very low, except for specific addresses on Glengall Road and Glengall Terrace where it is low to middle.

The development aims to be car-free, with exceptions for blue badge parking, and includes substantial improvements to pedestrian and cycle infrastructure.

Environmental considerations, including flood risk, land contamination, air quality, and noise, were addressed. The development is expected to exceed policy requirements for carbon reduction, achieving 69% on-site carbon reduction for residential elements and 42% for non-residential elements.

Aerial view of the proposed Bermondsey Place, Phase 2 and 3 development, showing the layout of buildings, streets, and green spaces.
Aerial view of the proposed Bermondsey Place, Phase 2 and 3 development, showing the layout of buildings, streets, and green spaces.Source: Planning Committee (Major Applications) A papers, 6 October 2026

The redevelopment is projected to generate an additional 41 Full Time Equivalent (FTE) jobs. It is also estimated to generate £76,650 per year in employee expenditure and £9.8 million per year in household expenditure.

The overall construction period for Phases 2 and 3 is notionally 16 years, with preconstruction assumed from September 2027 to August 2043. Phase 2 is expected to take 5-6 years to complete, and Phase 3 is expected to take 10-11 years to complete.

While some objections were raised regarding the reduction in affordable housing and perceived overdevelopment, the committee ultimately granted planning permission, subject to the completion of a Section 106 agreement and referral to the Mayor of London. The meeting details can be found in the Agenda frontsheet and the Public reports pack.