Multi-billion pound property giant Berkeley Homes bypasses council to push development plans in Peckham - despite local ‘outrage’. Meanwhile, all eyes are on the future of affordable housing across London.
On 28 October, a public inquiry will take place to decide the fate of the Aylesham Centre on Rye Lane in Peckham.
The proposed development was rejected by Southwark Council in July but Berkeley Homes is appealing the case. This could set the tone for property developers, both across London and the rest of the UK.
It is feared that other developers may follow suit, challenging the guideline figure of 35% affordable housing, in pursuit of luxury housing and larger profits at the expense of local communities.
Credit: City News, Lucy Hadlow
Siobhan McCarthy, of Aylesham Community Action, told City News:
“This would be gentrification on steroids, it would tip us over the edge. The demographics of the neighbourhood would change completely. Not only would it be an eyesore, the development would create a division of ‘them and us’ – a very private space in a public area.”
Property giant Berkeley Homes bought the Aylesham Centre in 2020 from Tiger Developments, and had planned to redevelop the site.
In July 2025, Berkeley Homes’ proposal for redevelopment of the Aylesham Centre was rejected by Southwark Council. This rejection was due to the property developer’s decision to reduce planned affordable homes from 35% to just 12%.
The proposal for the site would see 16 tall towers, comprising a total of 877 homes, built on the site of the shopping centre and market. There are no tall towers currently in Peckham.
Credit: Berkeley Homes
Berkeley Homes has appealed the decision and a public inquiry will take place at the end of October this year. If the council’s decision is overturned, Berkeley Homes will get the greenlight.
The shopping centre is understood to be an integral part of Peckham’s identity with locals insisting that it ‘won’t be the same’ without it.
Local resident, Suvvy, told City News: “It seems like [Berkeley Homes] wants to push us out. I’ve been here since 1973, we know everybody.”
“Peckham is vibrant, it is a community and the Aylesham Centre brings people together. The new housing would be a resentful thing.”
Members of the community say the proposed redevelopment will ‘price out’ current residents, meaning many of those who have grown up in the area would relocate to more affordable neighbourhoods further out of London.
Credit: City News, Lucy Hadlow
Several campaign organisations are fighting the plans for redevelopment in the area.
Siobhan McCarthy was born and raised in Peckham, and has been part of the campaign group, Aylesham Community Action, since 2021, shortly after Berkeley Homes bought the site.
“This inquiry is a landmark. If the government approves the proposal at national level, every developer in the country is going to think, ‘35%? I’ll give you 10% and see if you accept it’. If approved, there will be outrage. All eyes are on this inquiry – it is David and Goliath.”
Credit: City News, Lucy Hadlow
Aylesham Community Action has been fundraising to raise £50,000 for legal aid and to register as a Rule 6 party – the organisation feels this is the only way for the Peckham community to be ‘meaningfully involved’ in the decision.
Efforts have seen comedians James Acaster and Nish Kumar hold a fundraising gig, and donations from figures including Lord Harris of Peckham.
Despite claims from Berkeley Homes that their public consultation was ‘incontestable’ on plans for this redevelopment, Aylesham Community Action argues that it was ‘very weak and unmeaningful’.
Southwark Council previously stated: “We have clear expectations that all planning applications in Southwark must meet the needs of our borough, including our policies and requirements for green space, local business, transport and affordable housing.”
A spokesperson for Berkeley Homes said: “This is a great scheme, designed by award winning national and local architects in line with the Council’s development brief.”
“The project is designed for tenants to return and Berkeley will provide support to tenants during the process. The scheme complies with the development plan, including the provision of Community Land Trust homes.”
“However, delays cost money. Worsening market conditions and rising costs forced us to amend our plans – reducing the affordable housing – so that the project can finally go ahead.”
What’s next?
The public inquiry will commence 28 October for up to eight days. If the rejection is appealed, Peckham will undergo a 10-year construction period for the proposed buildings – at the expense of the Aylesham Centre.
For Peckham locals and Londoners alike, this could signal rising rents and a concerning shift: private developers may start to reduce affordable housing commitments, not just in London but across the UK.
Headline‘David & Goliath’: People vs profit in Peckham
Short HeadlinePeople vs profit in Peckham
StandfirstMulti-billion pound property giant Berkeley Homes bypasses council to push development plans in Peckham - despite local ‘outrage’. Meanwhile, all eyes are on the future of affordable housing across London.
On 28 October, a public inquiry will take place to decide the fate of the Aylesham Centre on Rye Lane in Peckham.
The proposed development was rejected by Southwark Council in July but Berkeley Homes is appealing the case. This could set the tone for property developers, both across London and the rest of the UK.
It is feared that other developers may follow suit, challenging the guideline figure of 35% affordable housing, in pursuit of luxury housing and larger profits at the expense of local communities.
Credit: City News, Lucy Hadlow
Siobhan McCarthy, of Aylesham Community Action, told City News:
“This would be gentrification on steroids, it would tip us over the edge. The demographics of the neighbourhood would change completely. Not only would it be an eyesore, the development would create a division of ‘them and us’ – a very private space in a public area.”
Property giant Berkeley Homes bought the Aylesham Centre in 2020 from Tiger Developments, and had planned to redevelop the site.
In July 2025, Berkeley Homes’ proposal for redevelopment of the Aylesham Centre was rejected by Southwark Council. This rejection was due to the property developer’s decision to reduce planned affordable homes from 35% to just 12%.
The proposal for the site would see 16 tall towers, comprising a total of 877 homes, built on the site of the shopping centre and market. There are no tall towers currently in Peckham.
Credit: Berkeley Homes
Berkeley Homes has appealed the decision and a public inquiry will take place at the end of October this year. If the council’s decision is overturned, Berkeley Homes will get the greenlight.
The shopping centre is understood to be an integral part of Peckham’s identity with locals insisting that it ‘won’t be the same’ without it.
Local resident, Suvvy, told City News: “It seems like [Berkeley Homes] wants to push us out. I’ve been here since 1973, we know everybody.”
“Peckham is vibrant, it is a community and the Aylesham Centre brings people together. The new housing would be a resentful thing.”
Members of the community say the proposed redevelopment will ‘price out’ current residents, meaning many of those who have grown up in the area would relocate to more affordable neighbourhoods further out of London.
Credit: City News, Lucy Hadlow
Several campaign organisations are fighting the plans for redevelopment in the area.
Siobhan McCarthy was born and raised in Peckham, and has been part of the campaign group, Aylesham Community Action, since 2021, shortly after Berkeley Homes bought the site.
“This inquiry is a landmark. If the government approves the proposal at national level, every developer in the country is going to think, ‘35%? I’ll give you 10% and see if you accept it’. If approved, there will be outrage. All eyes are on this inquiry – it is David and Goliath.”
Credit: City News, Lucy Hadlow
Aylesham Community Action has been fundraising to raise £50,000 for legal aid and to register as a Rule 6 party – the organisation feels this is the only way for the Peckham community to be ‘meaningfully involved’ in the decision.
Efforts have seen comedians James Acaster and Nish Kumar hold a fundraising gig, and donations from figures including Lord Harris of Peckham.
Despite claims from Berkeley Homes that their public consultation was ‘incontestable’ on plans for this redevelopment, Aylesham Community Action argues that it was ‘very weak and unmeaningful’.
Southwark Council previously stated: “We have clear expectations that all planning applications in Southwark must meet the needs of our borough, including our policies and requirements for green space, local business, transport and affordable housing.”
A spokesperson for Berkeley Homes said: “This is a great scheme, designed by award winning national and local architects in line with the Council’s development brief.”
“The project is designed for tenants to return and Berkeley will provide support to tenants during the process. The scheme complies with the development plan, including the provision of Community Land Trust homes.”
“However, delays cost money. Worsening market conditions and rising costs forced us to amend our plans – reducing the affordable housing – so that the project can finally go ahead.”
What’s next?
The public inquiry will commence 28 October for up to eight days. If the rejection is appealed, Peckham will undergo a 10-year construction period for the proposed buildings – at the expense of the Aylesham Centre.
For Peckham locals and Londoners alike, this could signal rising rents and a concerning shift: private developers may start to reduce affordable housing commitments, not just in London but across the UK.
