DEVASSIST: Lewisham Council Approves 1,700-Home Redevelopment of Shopping Centre Despite Height and Affordability Concerns

The London Borough of Lewisham has granted approval for Landsec’s major redevelopment of Lewisham Shopping Centre – a high-density mixed-use scheme that will deliver around 1,700 homes across towers of up to 35 storeys. The decision was made despite the proposal exceeding the borough’s own height guidance and offering an affordable housing level well below local policy targets.

The hybrid application forms part of Landsec’s wider regeneration plans for the south-east London town centre. It combines detailed consent for the first phase with outline consent for the remainder of the site, which extends across nearly seven hectares.

The Approved Scheme

Under the approved plans, the first phase will involve demolishing around 3,900 square metres of existing floorspace to make way for two new buildings. These will contain 445 co-living rooms and 119 conventional homes, alongside new commercial and business space at ground level.

The outline element covers the rest of the site, around 52,000 square metres, and would see the demolition of the remaining shopping centre structures to deliver a comprehensive mixed-use redevelopment. The proposal allows for up to 1,625 new homes, around 661 student bedrooms, and 46,600 square metres of new town centre floorspace, including shops, restaurants, leisure, community and cultural spaces.

In total, the masterplan provides roughly 11,900 square metres of open space and public realm improvements, including more than 4,000 square metres of dedicated play space. The scheme is intended to reconnect the area’s fragmented street network and integrate the town centre more closely with the surrounding neighbourhoods.

Responding to Changing Retail Dynamics

According to the council’s planning report, the existing shopping centre contains over 73,000 square metres of town centre uses, although only around 60 per cent is currently let. Planners concluded that the redevelopment reflects ongoing shifts in retail behaviour and responds to long-term vacancies in the town centre.

The report said the new mix of uses, including a minimum of 18,700 square metres of retail space, would represent “a potential reduction from existing provision”, but one that “responds positively to longstanding vacancies and changing retail dynamics”.

Lewisham Council has, for several years, identified the site as a key opportunity for town centre renewal. The redevelopment is expected to play a central role in the borough’s ambition to secure Metropolitan Centre status within the London Plan hierarchy.

Height and Density

The council’s Local Plan designates the shopping centre site as suitable for tall buildings but recommends a maximum height of 25 storeys. Two of Landsec’s proposed towers will reach 33 and 35 storeys.

Planning officers acknowledged that the development represents a “significant step change” for the area and “a very dense scheme with multiple tall buildings”. However, they concluded that the additional height was justified “in the context of the site’s strategic role and the public benefits secured”, including substantial housing delivery and major improvements to the public realm.

Affordable Housing and Viability

Lewisham’s planning policies set a strategic target for 50 per cent genuinely affordable housing in large-scale schemes. Landsec’s application proposes just 16 per cent.

The planning report stated that this figure had been “rigorously tested by the council’s appointed consultants, who identified a substantial deficit under current cost assumptions”. Officers noted that while grant funding or future market improvements could enhance viability, the consent includes early, mid, and late-stage review mechanisms to capture any uplift in value and secure additional affordable homes over time.

This flexible approach, while lower than local targets, was justified in part by the borough’s poor recent housing delivery record. The report highlighted that Lewisham’s latest Housing Delivery Test result shows only 32 per cent of required homes delivered, triggering the presumption in favour of sustainable development under the National Planning Policy Framework (NPPF).

As the report put it, there is “a clear policy imperative to support proposals that make a meaningful contribution to housing delivery”.

Planning Balance and Public Benefits

Officers concluded that, on balance, the scheme “broadly accords with the strategic aims and policies of the development plan” and offers substantial public benefits. These include new housing across multiple tenures, improved public realm, community and cultural facilities, and extensive landscaping and urban greening.

The redevelopment is also expected to unlock new pedestrian and cycle routes through the town centre, replacing large areas of underused hard landscaping with active ground floors and accessible public spaces.

The committee report described the proposals as being “underpinned by a robust masterplan, extensive engagement, and a design-led approach that supports Lewisham’s ambition to achieve Metropolitan Centre status.”

Next Steps

The project will be delivered in phases over several years, subject to reserved matters approvals. Work on the first phase, including the co-living and residential towers, is expected to begin once detailed design and contractor appointments are finalised.

While the approval has drawn some local criticism over its height and affordability, supporters argue that it represents a long-overdue investment in Lewisham’s town centre and a necessary response to housing demand and retail decline.

For now, the scheme’s approval signals a pragmatic approach from Lewisham Council, one that prioritises regeneration and housing growth, even where local plan parameters are stretched to achieve it.

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