Greenwich Council Set to Approve Major Housing Development Despite Affordable Housing Reduction
Plans to construct 1,500 homes on the Greenwich Peninsula are moving forward, with Greenwich Council poised to grant approval despite a significant reduction in the scheme's affordable housing component. The Morden Wharf development, located on the southwestern side of the peninsula, was originally approved in 2022 with a commitment to deliver 35% affordable housing.
Reduced Affordable Housing Commitment
Developer Galliard Homes returned to the council's Planning Board in February with updated proposals that slashed the affordable housing provision from 35% to just 10%, citing escalating construction costs and evolving building regulations as primary reasons. The developer has since revised this figure upward to 20%, aligning with new measures introduced by the Greater London Authority.
Mayor Sir Sadiq Khan announced these measures in October, establishing that developers without upfront viability assessments can proceed if they provide at least 20% affordable housing, with schemes eligible for grant funding covering approximately half of the affordable homes delivered.
Council Seeks Clarification Before Decision
Greenwich Council's Planning Board initially deferred making a final decision on the updated Morden Wharf plans, seeking further clarification on the GLA's new measures and more detailed information regarding Galliard's engagement with registered affordable housing providers. The council wanted assurance that the affordable housing component would be properly managed and delivered.
Galliard has now returned to the council following the GLA's adoption of the 'Support for Housebuilding' London Plan Guidance, which came into force last month. This guidance provides greater clarity on measures designed to accelerate housebuilding across London while maintaining affordable housing standards.
New Commitments and Exemptions
With the GLA confirming the scheme's eligibility for grant funding, Galliard has committed to delivering 20% affordable housing at Morden Wharf. If approved by the Planning Board next week, the developer will be exempt from submitting upfront viability assessments and will not be subject to mid or late-stage reviews.
Viability assessments typically determine whether a proposed development can meet policy requirements—including affordable housing quotas—while remaining financially viable. Mid and late-stage reviews compare updated sales and cost data against original projections to assess whether additional affordable housing or financial contributions are necessary.
Engagement with Housing Providers
Galliard confirmed it has communicated with all 17 registered affordable housing providers on Greenwich Council's preferred list, with five expressing interest in delivering the affordable housing component at Morden Wharf. This engagement demonstrates the developer's commitment to ensuring the affordable homes are properly managed and allocated.
Greenwich planners have recommended approval of the updated Morden Wharf plans, which will be discussed at the Planning Board meeting scheduled for April 14. The development represents a significant addition to housing stock in the area, though the reduction in affordable housing has raised concerns about accessibility for lower-income residents.
The situation highlights the ongoing tension between development goals and affordable housing commitments in London's rapidly evolving property market, with developers citing financial pressures while councils strive to maintain housing accessibility standards.
