Housebuilder Berkeley is taking its fight against a blocked 850-home Peckham development to the courts. The company has launched a judicial review of the planning inspectorate's decision, made in May, to halt the project due to heritage concerns.
The proposed Aylesham Centre redevelopment, which includes a new Morrisons supermarket, would bring nearly 1,000 jobs and £15 million in local infrastructure investment, according to Berkeley. However, critics argue that the development would compromise the area's character. Local councillors welcomed the decision, but housebuilders and economists expressed concerns about the impact on housing supply.
Rob Perrins, Berkeley's executive chair, has described the planning inspectorate's ruling as "clearly flawed". The company is arguing that the inspector failed to adequately assess alternative proposals and did not follow the national planning framework, which mandates a bias towards sustainable developments. This challenge highlights the tension between housing delivery targets and local heritage preservation.
Morrisons, who will be relocating from the site, has publicly backed Berkeley's judicial review. The supermarket giant warns that the current situation leaves Peckham with an "end of life shopping centre" and a supermarket unable to be redeveloped for customers' benefit. Berkeley claims the project would provide 60 apprenticeships and £13 million annual spending in the area.
The dispute reflects the complex challenges facing London's housing market. The Bank of England has consistently flagged housing supply as a long-term factor influencing inflation and economic stability. A slowdown in housebuilding could exacerbate existing pressures on housing affordability, impacting households and the construction sector nationwide. The outcome of this judicial review may set an important precedent for large-scale developments across the country.
Southwark Council leader Cllr Sarah King hailed the initial decision as a "great day for Peckham", but the council has since clarified its position on the redevelopment plans, stating they remain committed to finding a solution that balances housing needs with local concerns. Berkeley's share price has taken a hit following the planning inspectorate's ruling.