Southwark housing development gets go ahead

A significant site in Southwark – Larnaca Works - which was recently given the go-ahead by the local council for a variation to its Section 106 agreement in order to deliver a viable affordable housing quantum will now be delivered.

The affordable housing element comprising 18 social rented homes has been acquired by Hexagon Housing through Knight Frank’s affordable housing team.

The Southwark Planning Committee was forward thinking in its recent agreement to revise the Section 106 Agreement to offer a more appropriate amount of affordable housing. The scheme originally gained planning consent in June 2007 for 35% affordable housing, however Knight Frank compiled a financial viability report to demonstrate that in the current market, only 25.6% affordable housing could be supported.

By being flexible and accepting the impact of the current economic climate Southwark has prevented the scheme from being mothballed thereby ensuring delivery of much needed homes, in addition to the employment during the construction period. The Bermondsey Spa Regeneration Area, in which the site can be found, will also benefit from the investment.

The consented scheme will offer 63 private apartments, and 18 social housing units mostly for family occupation.

Southwark Council, when deciding the application, insisted on a clause in the Section 106 Agreement requiring the developer to start on site within six months. This was intended to ensure that the consent was implemented in the short term.

Tim Hamilton-Miller, senior consultant on the affordable housing team at Knight Frank, who advised Union, said: “Because Southwark council has taken a proactive view, this has allowed development to go on where it otherwise would not have done. It is good news for everyone involved.”

Knight Frank advised the previous owners, Union developments.

For more information, visit knightfrank.co.uk.