Developer mulls legal challenge after 800 new London homes blocked

A major developer is preparing to mount a legal challenge after its proposals to build hundreds of new homes in south London were blocked.Berkeley Group is considering seeking a judicial review in the High Court after the Planning Inspectorate rejected its plans to convert a shopping centre in Peckham into 867 new homes.In its decision published on Monday, the planning inspector Matthew Shrigley called the project “overly domineering” and “visually intrusive”, warning it would obstruct views of Peckham clock tower.Mr Shrigley ruled that the harm to heritage buildings in the area outweighed the benefits of the development, even as he acknowledged the “critical need” to build more houses in the capital.However, Rob Perrins, the executive chairman of Berkeley Group, said the decision demonstrated “the extreme uncertainty developers continue to experience within the planning system”.Mr Perrins said: “Housing delivery in London is at an all-time low, the Government has set clear pro‑housing policy, yet we are still blocked from building homes on a fully allocated brownfield regeneration site in a town centre.“There is something fundamentally wrong when the inspector supports our affordable housing offer and wider benefits, recognises the acute local housing need, yet blocks development due to subjective heritage impacts, which we believe are of low harm.“This is why developers, including Berkeley, can no longer invest in new London sites and the housing crisis continues to deepen. Decisions that block housing delivery and growth must be challenged, and we will now consider all options open to us.”The FTSE 100 housebuilder acquired the Aylesham Centre site in 2021 and began drawing up plans to convert it into new homes.The company said its proposals would create nearly 1,000 jobs and boost the local economy with more than £13m in additional spending.But the plans were met with fierce opposition from local councillors and residents and campaign groups, who fundraised more than £55,000 to mount a legal challenge.The housebuilder submitted its planning application to Southwark council, which until May’s elections was dominated by Labour, in July 2024. It lodged an appeal with the planning inspector for non-determination the following year after a decision had still not been reached.Southwark’s planning committee then voted to reject the application, citing concerns about its proposal for 12pc affordable housing and how it would affect the local conservation area.Sarah King, the Labour leader of Southwark council, said the inspector’s verdict marked a “great day for Peckham”.She added: “I’d like to personally thank the community who spoke loud and clearly about their concerns. We shared those concerns and strongly argued at the public inquiry that the scheme was poorly designed and our position has been vindicated.”