Greenwich Council's Planning Board has approved a significant reduction in the proportion of affordable housing at the Morden Wharf development, lowering it from the originally agreed 35% to a committed 20%. The decision, made at a meeting on Tuesday, 14 April 2026, allows for alterations to conditions attached to the Morden Wharf development under Section 73 of the Town and Country Planning Act 1990.
The developer requested this reduction due to changing economic conditions
and the adoption of new London Plan Guidance on 'Support for Housebuilding'. An updated Financial Viability Assessment (FVA) stated that the development was no longer viable to provide affordable housing on site as part of the development.
Factors cited for this change in viability included new building safety requirements reducing net internal area, increased construction costs, increased regulatory and funding costs, reduced affordable housing revenues, and increased taxes. The FVA consultant assessed that the development was in deficit and could not support any affordable housing provision. However, the Greater London Authority (GLA) reviewed the viability appraisal and concluded that with GLA funding, the development could support 20% affordable housing. The developer has committed to a minimum of 10% affordable housing, with a further 10% subject to securing GLA grant funding.
The revised affordable housing offer, comprising 68% social rent and 32% intermediate housing, is eligible for grant funding from the GLA. This change was made in response to updated London Plan Guidance on 'Support for Housebuilding', which allows for a lower threshold of 20% affordable housing on schemes that can be delivered quickly. Specifically, the updated London Plan Guidance (LPG) 'Support for Housebuilding', adopted in March 2026, sets out a time-limited planning route for affordable housing. For schemes delivered quickly, a lower threshold is applied. For Morden Wharf, the GLA confirmed that to meet this threshold, a minimum of 20% affordable housing needs to be provided on industrial land where industrial floorspace capacity has been re-provided. This affordable housing must be a minimum of 60% social rent, with the remaining 40% as intermediate tenures.
Councillors debated the reduction from the initial 35% affordable housing, with some expressing discomfort. However, the board ultimately voted to approve the recommendation, with two votes in favour, one against, and one abstention. The decision was made despite concerns raised about the removal of mid and late-stage viability reviews. Under the adopted London Plan Guidance, if a developer commits to 20% affordable housing, viability is not reviewed at mid or late stages. The guidance states that this route is available for planning applications validated by March 31, 2028, by which time the new London Plan is expected to be adopted. The intended purpose of the original mid and late-stage viability reviews was to assess the scheme's viability at different points during development to potentially allow for adjustments or increased affordable housing contributions if market conditions improved.
The projected timeline for completion of the Morden Wharf development, once construction starts, is probably completion by 2032
. This timeline is influenced by enabling works such as river wall works (which are seasonal and could start in October of the following year), gateway to building safety approval, and basement construction before residential building can commence. The development is phased, with buildings coming forward sequentially.
Under the adopted London Plan Guidance, schemes that meet the eligibility criteria (such as providing 20% affordable housing on industrial land where industrial floorspace capacity has been re-provided) will be eligible for grant funding from the GLA. The guidance clarifies that bids for grant funding for low-cost rented homes must be made by a Private Registered Provider of Social Housing or a local authority. The developer has committed to providing 20% affordable housing unconditionally, and this revised offer is eligible for GLA grant funding. The meeting information does not explicitly state how this compares to the eligibility for the original 35% commitment, but it implies that the 20% threshold is now the key for grant eligibility under the new guidance.
Further details on the Morden Wharf development can be found in the Public reports pack and Addendum 2.
