Plans have been approved for 626 new residences in south-west London, yet none will be designated as affordable housing.
Last month, the redevelopment of Mitcham Gasworks received the green light from Merton Council. Councillors expressed regret over the decision, citing the pressing demand for affordable housing in the eastern part of the borough.
According to developer St William, the previously promised 35% affordable housing is now unattainable due to difficulties in obtaining the required grant funding.
Tony Burton, the secretary for the Mitcham Cricket Green Community and Heritage civic society, stated, “It is unacceptable that the most significant housing project in Mitcham for decades will not include any affordable homes.”
This marks the third revision of the development plans.
The approved proposal has also adjusted the height of buildings adjacent to Hay Drive and Portland Road and increased the overall housing count from 579 to 626, with a larger percentage of smaller private units.
During the development and planning committee meeting on November 27, Mr. Lewis explained that their initial plans collapsed due to viability issues, as the necessary funding could not be secured.
He noted that “some of the residences would have been outside the eligibility period for the available grant.”
Furthermore, the developer cited the complexities associated with the former gasworks site, which was cleared in 2021, alongside escalating construction costs as contributing factors to the challenges faced.
St William mentioned they are in talks with Merton Council and the Greater London Authority (GLA) to obtain grant funding for a minimum of 146 homes at social rent.
Confirmation of this funding is not anticipated until at least April 2026, when the subsequent round of GLA funding is released.
“We recognize that no one desires a project of this magnitude to lack affordable housing. We believe the most effective way to prevent this is by securing the necessary grant,” stated Mr. Lewis.
The developer is awaiting a response on this matter before proceeding with construction.
Mr. Burton expressed doubt regarding the developer’s claim that affordable housing is financially unviable, highlighting that neither St William nor Merton Council has made their comprehensive assessment public.
During the meeting, independent councillor Edward Foley acknowledged that while he “hopes this situation does not recur,” he believes the scheme could still prove advantageous for Mitcham.
In contrast, councillor Gill Manly, representing the ward that includes the development site, criticized the developer, remarking, “I am appalled that we are still debating viability at this stage.”
A spokesperson for the London Borough of Merton remarked, “After reviewing the officer’s report, pertinent submissions, and the applicable planning framework, the independent planning committee, composed of councillors from all parties, voted to approve the planning application, contingent upon a legal agreement aimed at making reasonable efforts to secure affordable housing.”
