The developer building an “affordable” housing development backed by Greenwich Council is applying to cut the time in which it is only available to local residents – because high interest rates mean homes are now unaffordable for the first-time buyers they are aimed at.
Pocket Living had promised that its 48-flat development at The Heights in Charlton would be exclusively available to Greenwich borough residents for six months before being opened to buyers from across London.
To qualify, locals have to earn £71,000 or less, while those from across London can earn as much as £90,000, a level set under City Hall rules.
But Pocket is applying to cut this exclusivity period down to three months because of a collapse in the first-time buyer market.
“We are seeing less demand from first-time buyers,” Pocket Living’s application to Greenwich Council reads. “This is largely due to first-time buyers becoming more cautious and pausing on purchases until interest rates fall.”
The application cites research from December that showed 46 per cent of first-time buyers did not think it was a good time to buy a home.
“Allowing a cascade to London-wide buyers after three months will widen the pool of first-time buyers at an earlier stage, whilst continuing to prioritise people living or working in Greenwich,” it adds.
The 48 flats are to be sold at a 20 per cent discount to market values, meaning they qualify as “affordable” housing. Pocket has been given grants from City Hall as part of housing programmes overseen by both Boris Johnson and Sadiq Khan, and the former Greenwich & Woolwich MP Nick Raynsford sits on its board.
Pocket broke ground on the site – an old council estate car park that overlooks The Valley, Charlton Athletic’s stadium – in June 2022, with Greenwich Council leader Anthony Okereke and regeneration cabinet member Aidan Smith in attendance.
“Projects like this will help first-time buyers get on the ladder and keep local people living, working and enjoying our fantastic borough,” Okereke said at the time.
But work ground to a halt after 11 months when the construction company, Claritas, went bust. Pocket later applied to use cheaper materials to finish the job, an application that was waved through with no objections.
A new contractor, Legendre UK, has now taken over, and work has recently restarted, with a team on site on Tuesday. Scaffolding has appeared around the shell of the building with a crane being dismantled. Pocket says that it hopes to finish the project early next year.
There had been some controversy about Greenwich selling the land to Pocket. The council had originally planned to sell three sites to the company, but dropped two – at Lewisham Road and Kidbrooke Park Close – after protests from Labour councillors, who said the council should be using the land for its own housing.
But The Heights proposal stayed, and was passed by Greenwich’s planning board three years ago with few objections. The council is now planning to build its own homes on the Kidbrooke site.
Pocket told The Greenwich Wire that its plan to change the exclusivity period for Greenwich residents at The Heights was in line with London’s planning rules.
“London Plan policy seeks a local eligibility period of first three months before expanding out to a London-wide pool of first-time buyers. The Pocket project at The Heights is in line with this and local first-time buyers will be given every opportunity to get their first step on the ladder with us,” it said.
Full details of the proposal and comments can be left on the Greenwich Council planning website.
Updated at 11am to include Pocket comment.
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