The developer behind the £4 billion Canada Water Masterplan has insisted the scheme has not been put on hold, despite reports that work on its next stage has stalled, Southwark News reports. British Land, which won planning permission for the 53-acre Rotherhithe regeneration in 2020, said it was simply waiting for market conditions to improve before bringing forward the second of five phases.
Key points
- First phase complete — 265 homes delivered, including 79 affordable homes at 7 Roberts Close and 186 private flats at The Founding.
- Slow sales — only about 30% of the 186 flats in The Founding have reportedly been sold.
- Affordable housing cut — Deputy Mayor Jules Pipe approved nine per cent affordable housing in March after a £51.3 million grant.
- No timeframe — British Land says it is waiting for the new Budget before setting a start date for Phase Two.
A spokesperson for the company told the paper that with Phase One finished and construction not yet begun on Phase Two, the project was caught between stages rather than paused. They said the intention to start building next year had not been abandoned, but a firmer timetable would follow the Budget.
Sales and costs behind the delay
Prices at The Founding, a 35-storey block beside Canada Water station, start at £495,000 for a studio and rise to £1,484,000 for a three-bedroom flat. Reports of weak demand, combined with higher construction and regulatory costs, were said to have held back the next phase. British Land also said growing demand for purpose-built student accommodation would be taken into account in later phases.
The developer's room to move was created by a Section 73 application approved earlier this year, which allowed changes to meet new building safety laws. In November British Land asked the Mayor to call in the scheme, claiming only three per cent of the Masterplan could be affordable in current conditions. In March, Deputy Mayor Jules Pipe approved revised plans with nine per cent affordable housing, well below Southwark's usual 35 per cent threshold, after the Mayor provided the £51.3 million grant.
Green councillor Colin Boyle, who represents Rotherhithe, said a "huge question mark" remains over the area. He argued that in the six years since permission was granted the developer had completed only the first phase while demolishing the cinema, bowling alley, bingo hall and restaurants, and running down the shopping centre.
What it means in practice
For people living around Canada Water, the practical effect is more waiting. The homes, workspaces and new park promised for the later phases will not appear on any fixed schedule yet, and the slow sales at The Founding suggest the developer will not rush.
- Housing plans — anyone hoping to buy or rent in the new blocks should not count on later phases arriving soon.
- Local services — the area around the shopping centre will stay disrupted for longer, with the promised new spaces delayed.
- Affordable homes — the affordable share already approved is far below the borough's norm, so watch what the next phase delivers.
