The redevelopment of Lewisham Shopping Centre has been put on hold – halting plans to build hundreds of flats, student accommodation and a new mall.
Landsec, the owner of the centre, said it was “deprioritising” the scheme because of current economic conditions and the opposition of Lewisham’s elected Green mayor, Liam Shrivastava, to the plans unless more homes for social rent were included.
Work had been due to start next year on the £1.5 billion scheme, which featured towers of up to 35 storeys as well as a music venue, 661 student rooms, 445 co-living spaces, new public spaces and a rooftop meadow.
One of the centre’s key stores, Boots, had already moved to facilitate the first phase of development, with NatWest announcing that it would follow suit. Work to reopen the Model Market food and drink area would continue, Landsec told The Greenwich Wire.
Plans were approved by councillors a year ago, when the council was under Labour control, and rubber-stamped in July, despite the project only having 98 out of 1,744 homes for social rent, along with 231 at discounted rents for key workers.
Landsec needed to take control of the adjacent former Citibank tower – Lewisham House – for the scheme to go ahead. But after the Greens won control of Lewisham Council in May, Shrivastava said he would not help the developer take over the building unless it added more social housing.
Shrivastava had backed a campaign against the redevelopment during the election campaign, and had been under pressure from campaigners after becoming mayor. Lewisham People’s Assembly, which had pursued the mayor on the issue, claimed victory on social media.
The group, which had previously said the scheme would lead to a hiking of private rents across the area, told The Greenwich Wire: “The redevelopment being halted with no clear new start date brings a new opportunity for Lewisham. We still want to see development and investment in Lewisham, but now this brings opportunities for proposals that actually work to sufficiently meet community needs rather than making them a mere afterthought.”
Objectors to the shopping centre proposal included neighbouring Greenwich Council, which was concerned about the effects of the towers on views from Blackheath, Eltham and the Greenwich world heritage site, and the leaseholder of Lewisham House, which has its own plans to redevelop the building.
Sainsbury’s and Primark, two of the centre’s biggest stores, also filed objections.
Landsec said it would continue to operate and improve the existing mall, which opened as the Riverdale Centre in 1977, and invest in community partnerships based there.
The company said in an email to people who had taken part in its consultation: “The costs of building in London have risen sharply in recent years. Higher interest rates, construction cost inflation, and new building regulations mean that bringing forward new developments in the city has never been more challenging.
“Recent statements from Lewisham Council also make clear that the administration is not able to support the next phase of land assembly needed to unlock the redevelopment of the shopping centre without a significant increase in affordable housing. This would require a material change to the proposals we originally put forward.
“This position, combined with the exceptionally difficult economic conditions, mean that we no longer see a sufficiently certain route to delivery and have taken the difficult decision to deprioritise the redevelopment of Lewisham Shopping Centre.”
Landsec told The Greenwich Wire that work was “ongoing” on reopening Model Market, which was due to reopen this year under the management of the German Kraft brewery, but has not been fitted out.
In a lengthy statement, Shrivastava said Landsec would remain a “valued local partner” and the council would continue to work with the firm, including on lobbying for the Bakerloo Line extension and reopening Model Market.
He said: “I recognise the strength of feeling of those concerned about the development. I also know there were many other residents and businesses who wanted to see it come forward. The fact is the conditions for such projects are simply not favourable right now.
“The development environment is as tough as it has ever been, and what we have seen recently is that developers of all shapes and sizes have struggled to get development going in London.
“The reality of the housing crisis we face in Lewisham, where so many households are in temporary accommodation or struggling to find a home they can afford, is that we are going to need genuinely affordable housing to come forward from across the board. The way out of this crisis is through delivering social housing.
“Our administration remains committed to working with private sector, public sector and community partners who share our ambition to deliver affordable homes and the infrastructure that supports them.”
Lewisham’s Labour opposition leader, Ese Erheriene, said the news was a “devastating blow”.
“Our town centre has lost £1.5 billion of investment, more than 300 affordable homes and up to 1,900 jobs,” she said.
“Landsec has been clear that the mayor’s position was a factor in its decision. Last month I warned him that his approach risked driving this scheme away. He dismissed it. That is exactly what has happened.
“The mayor said he was fighting for more affordable homes. Instead, residents have lost the 329 that were on the table.
“Lewisham needs homes, jobs and a town centre fit for the future. The mayor owes residents an apology, a full account of his discussions with Landsec, and a plan for what happens to this site now.”
The troubles hitting the shopping centre development follow issues at the nearby Lewisham Gateway development, where residents had to move out of their new homes last year after a flood. They will not be able to move back in until late next year, the developer Get Living said earlier this month.
Lewisham Council is also redeveloping the library into a culture and business hub – a scheme delayed by a year because of issues with the building – while work on a canopy for the street market was also held up after a wartime shelter was found underneath it.
Updated at 10am on Wednesday with Lewisham Labour statement.
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