The public inquiry into Berkeley Homes’ plans to redevelop the Aylesham Centre in Peckham is now underway, and the outcome is expected to impact future development across the capital.
The inquiry, which began on 28 October, will determine whether Berkeley can overturn Southwark Council’s previous rejection of its proposal to build 877 homes across 16 residential towers on the site of the Aylesham Centre and its adjoining marketplace.
The council rejected the application in July 2025 after the developer reduced its affordable housing offer from the advised 35% to just 12%, blaming rising construction costs and worsening market conditions.
Local campaigners say the case could shape future negotiations over affordable-housing requirements. They argue the outcome may set a precedent for developers to scale back commitments in urban areas where land values are high.
Siobhan McCarthy, of Aylesham Community Action, told City News: “This inquiry is a landmark, it would set a precedent, developers will try their luck at undermining affordable housing guidance – we would see these numbers going down across London.”
Aylesham Community Action (ACA), a volunteer-led group formed in response to the redevelopment plans, is taking part in the inquiry as a Rule 6 party after a successful fundraising campaign for legal support.
“The community has a seat at the inquiry table, along with the council, and developer. We thought it was essential the community had a voice in the most important local issue, which was the only way for meaningful involvement.”
Credit: Lucy Hadlow, City NewsProposed development plan Credit: Berkeley Homes
Evidence so far has focused on two central questions: the cultural impact of the redevelopment on the Rye Lane Conservation Area, and the financial viability of delivering more affordable homes within the scheme.
Planning experts and consultants have been questioned on how the proposed towers would affect key sightlines and the historic character of central Peckham.
The inquiry has reviewed evidence on affordable housing delivery and the developer’s financial modelling. Peckham has a significantly higher need for social rented housing compared to national averages, and many residents claim they are already priced out of private market rents and ownership.
More than 18,000 households are on a waiting list for social housing, with 4000 in temporary accommodation, according to council statistics.
Credit: Lucy Hadlow, City News
Berkeley Homes insists the scheme has been designed in line with the council’s development framework and would provide new public spaces, retail units and housing in an area identified for regeneration.
It has argued construction cost inflation and market pressures have significantly affected viability, making a higher affordable housing allocation unachievable.
Berkeley Homes previously told City News:
“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.”
“It will boost the local economy, with the new homes estimated to generate over £13 million annually in additional spending, alongside the £15m s106 and CIL for the Council to invest in the local community. Nearly a thousand construction and permanent jobs will be created, as well as 60 apprenticeships.”
“Worsening market conditions and rising costs forced us to amend our plans – reducing the affordable housing – so that the project can finally go ahead.”
Credit: Lucy Hadlow, City News
Southwark Council said the reduction in affordable housing is not justified by the developer’s viability evidence.
What happens next?
If the appeal is approved, construction would take place over a ten-year period. The Aylesham Centre would be demolished and replaced with the new development.
If the appeal is dismissed, Berkeley Homes would have to revise the scheme before submitting any future planning application.
The inquiry is expected to run for several more sessions, with a decision to be made before the end of the year.
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StandfirstThe public inquiry into Berkeley Homes' plans to redevelop Peckham's Aylesham Centre has begun.
The public inquiry into Berkeley Homes’ plans to redevelop the Aylesham Centre in Peckham is now underway, and the outcome is expected to impact future development across the capital.
The inquiry, which began on 28 October, will determine whether Berkeley can overturn Southwark Council’s previous rejection of its proposal to build 877 homes across 16 residential towers on the site of the Aylesham Centre and its adjoining marketplace.
The council rejected the application in July 2025 after the developer reduced its affordable housing offer from the advised 35% to just 12%, blaming rising construction costs and worsening market conditions.
Local campaigners say the case could shape future negotiations over affordable-housing requirements. They argue the outcome may set a precedent for developers to scale back commitments in urban areas where land values are high.
Siobhan McCarthy, of Aylesham Community Action, told City News: “This inquiry is a landmark, it would set a precedent, developers will try their luck at undermining affordable housing guidance – we would see these numbers going down across London.”
Aylesham Community Action (ACA), a volunteer-led group formed in response to the redevelopment plans, is taking part in the inquiry as a Rule 6 party after a successful fundraising campaign for legal support.
“The community has a seat at the inquiry table, along with the council, and developer. We thought it was essential the community had a voice in the most important local issue, which was the only way for meaningful involvement.”
Credit: Lucy Hadlow, City NewsProposed development plan Credit: Berkeley Homes
Evidence so far has focused on two central questions: the cultural impact of the redevelopment on the Rye Lane Conservation Area, and the financial viability of delivering more affordable homes within the scheme.
Planning experts and consultants have been questioned on how the proposed towers would affect key sightlines and the historic character of central Peckham.
The inquiry has reviewed evidence on affordable housing delivery and the developer’s financial modelling. Peckham has a significantly higher need for social rented housing compared to national averages, and many residents claim they are already priced out of private market rents and ownership.
More than 18,000 households are on a waiting list for social housing, with 4000 in temporary accommodation, according to council statistics.
Credit: Lucy Hadlow, City News
Berkeley Homes insists the scheme has been designed in line with the council’s development framework and would provide new public spaces, retail units and housing in an area identified for regeneration.
It has argued construction cost inflation and market pressures have significantly affected viability, making a higher affordable housing allocation unachievable.
Berkeley Homes previously told City News:
“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.”
“It will boost the local economy, with the new homes estimated to generate over £13 million annually in additional spending, alongside the £15m s106 and CIL for the Council to invest in the local community. Nearly a thousand construction and permanent jobs will be created, as well as 60 apprenticeships.”
“Worsening market conditions and rising costs forced us to amend our plans – reducing the affordable housing – so that the project can finally go ahead.”
Credit: Lucy Hadlow, City News
Southwark Council said the reduction in affordable housing is not justified by the developer’s viability evidence.
What happens next?
If the appeal is approved, construction would take place over a ten-year period. The Aylesham Centre would be demolished and replaced with the new development.
If the appeal is dismissed, Berkeley Homes would have to revise the scheme before submitting any future planning application.
The inquiry is expected to run for several more sessions, with a decision to be made before the end of the year.
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