Scheme was called in last year after report found only 3% of its 3,700 homes could be delivered as affordable
City Hall has approved British Land’s new Canada Water masterplan and handed the developer a grant to increase the amount of affordable housing to 9%.
The heavily revised scheme was called in by London mayor Sadiq Khan last December after a council report found only 3% of the scheme’s 3,700 homes could be delivered as affordable.
But deputy mayor Jules Pipe has now signed off the latest version of the plans, with the next phase now expected to start on site in 2027 and contain 20% affordable housing, with 9% across the masterplan overall. The value of the grant has not yet been disclosed.
British Land’s Canada Water lead Gareth Roberts said: “Approval of our revised masterplan is vital to accelerating momentum, creating a global destination as part of an amazing new neighbourhood that is uniquely Canada Water.
“The viability challenges we have faced are being felt across London, but with the first phase of development having recently completed, this decision will enable us to bring forward future homes, employment opportunities and investment in local infrastructure.”
The original 53-acre development was approved by Southwark council in May 2020 and would have delivered 2,815 homes and 4.7 million sq ft of retail, office and leisure space.
This version of the scheme would have delivered 35% affordable, provided as 25% social rent and 10% intermediate.
But the masterplan was drastically redesigned last year with the number of homes increased to 3,700, the non-residential floorspace cut to 4.6 million sq ft and building heights increased by as much as 13 storeys.
The developer has said the revisions, submitted through a Section 73 application in January 2025, were prompted by the sharp post-pandemic rise in construction costs, a slowdown in the housing market and regulatory changes including requirements for second staircases in residential buildings above 18m.
A report produced by planning consultant Quod for British Land in January found the revised scheme could only deliver a maximum of 3% affordable housing without public subsidy.
The council’s own report by BNP Paribas Real Estate later agreed with Quod’s original findings and concluded that the scheme would need a GLA grant of £39m and an additional public subsidy of £40m to increase its affordable share to 5.46%.
The percentage of affordable delivery was based on an agreement between British Land and Southwark council that the scheme would target a profit margin of 16%.
Other architects working on the masterplan include Morris & Company, Hawkins Brown and Townshend Landscape Architects.
The wider project team includes Aecom as project manager, DP9 on planning, Arup on transport, Waterman on structures and environment and GIA on daylight.
Mace and Wates were the main contractors on the first phase of the scheme, which started construction in 2021.
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