Canada Water London development stalls over costs and weak demand

Summarised from 2 outlets · Updated 3 Nov, 09:37 · Archive

Work on the second phase of the Canada Water regeneration in South East London has been paused due to rising construction costs and weak demand.

British Land's second phase of the Canada Water regeneration in Rotherhithe, South East London, has been paused due to rising construction costs and weak demand for homes completed in phase one. The multi-billion pound scheme spans 53 acres and was billed as London's first new town centre in 50 years, with the entire project originally set for completion around 2036.

Planning permission for the masterplan was granted in 2020. The scheme originally included more than 2,000 homes with 35 per cent designated as affordable housing, alongside 4.7 million square feet of retail, office and leisure space. However, revised plans approved earlier this year reduced the affordable housing offer to nine per cent.

Southwark Council has urged British Land to provide clarity to residents waiting for promised homes and community facilities. Victor Chamberlain, the council's executive member for neighbourhoods, strategic planning and wellbeing, acknowledged difficult market conditions facing developers across London but stressed the urgent need for affordable homes. He said the council stands ready to work with British Land, the Mayor of London and ministers to find a way forward that protects local people's interests. British Land declined to comment.

How it is being reported

• London's first new town in 50 years thrown into doubt as Canada Water scheme stallsThe multi-billion-pound scheme vowed to build thousands of homes, offices, shops and leisure facilities over the next decadeEvening Standard · 3 Nov, 09:13
• London's first new town centre in 50 years may be dead before it's even startedThe Canada Water Masterplan promised a shiny new town centre surrounded by thousands of new homesMyLondon · 2 Nov, 16:21

In this story: British Land · Southwark Council · Canada Water · Rotherhithe · London · Victor Chamberlain

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