Landsec, the owner of Lewisham shopping centre, has put its redevelopment plans for the centre on hold after the council made clear it was unable to support the next phase of the development unless their was a significant increase in affordable housing.
The developer said any increase in affordable housijg combined with the current difficult economic conditions (high interest rates and buidling cost inflation) meant it could no longer be certain of delivering the project. It has therefore decided to “de-prioritize” the shopping centre redevelopment.
Lewisham’s Green mayor, Liam Shrivastava, has opposed the redeelopment plans unless more homes for social rent are included in the scheme.
Work on the £1.5 billion scheme was due to start next year. The plans , approved by the last Labour administration, included several high-rise residential buildings, around 1,700 new homes and a large park built on the roof of the new centre.
The approved plan would have transformed the 17-acre site into a residential neighbourhood with a mix of affordable housing, student accommodation, and co-living residences, alongside a new shopping centre with bars, cafes and restaurants as well as shops, a music venue, and street food market.
But the scheme would only have included 98 homes for social rent, along with 231 at discounted rents for key workers.- an unacceptably meagre number for the Green administration.
However, the scheme would have delivered a “a £160m boost to the local economy” and created thousands of jobs, according to Landsec.
Landsec said it remained ommitted to Lewisham and to the shopping centre which it has owned for more than 20 years.
To proceed with its plans, Landsec needed to take control of the former Citibank tower – Lewisham House. The leaseholder, Lewisham House No.1 Limited (LHN1), has submitted its own planning application to Lewisham Council in 2025.
After the Greens won control of the council in May, the Mayor said he would not help Landsec take over the building unless it added more social housing. He backed a campaign against the development run by the Lewisham People’s Assembly.
Landsec said it would continue to operate and improve the centre which first opened in 1977.