Southwark Council has appointed Bouygues UK as the development partner to deliver a scheme providing 150 homes specifically for key workers in central London. Situated next to the Arnold Estate and within close walking distance of London Bridge and Bermondsey stations, the development will also feature a new community centre. This initiative is the first to advance under the borough’s emerging Affordable Housing Supplementary Planning Guidance, aimed at supporting public sector workers such as teachers, NHS staff, police officers, and social workers.

The homes, consisting of one- and two-bedroom units, will be offered at London Living Rent levels. Eligibility will be based on a combined household income ranging from £26,000 to £67,000. Subject to planning consent, construction is planned to begin in mid-2026, with an expected completion date around 2029. The project includes a flexible, double-height community hall alongside smaller support spaces designed for public hire, and the council is actively seeking an independent operator to manage the facility once it is completed.

Oliver Campbell, managing director for development at Bouygues UK, emphasised the company’s established relationship with Southwark Council, noting their previous delivery of nearly 700 homes at the Tustin Estate, another major housing regeneration scheme. The Tustin Estate project, undertaken in partnership with Southwark Council and developer Linkcity, involves nearly 700 new homes, including 250 replacement council homes, 220 additional council homes—incorporating key worker housing—and 220 private sale units. This development has a wider vision, with plans for a central park, refurbishment of existing council homes, and over 1,800 square metres of commercial floorspace. It also aims to improve public spaces through new pedestrian, cycle, and vehicular routes as well as enhancements to Tustin Common, with a projected completion timeline of 2030.

In parallel, Southwark Council has been piloting affordable housing models to retain key workers within the borough. A related initiative proposed around 100 affordable homes for key workers in Bermondsey at 177 Abbey Street is set near central transport links and aims to maintain community heritage by incorporating salvaged elements from the original Beormund Community Centre, which it intends to replace. This project also plans to involve a long-term lease model with a development partner responsible for design, construction, and management.

Bouygues UK’s collaboration with Southwark demonstrates a strong track record in delivering affordable and social housing projects; their recent Peckham Flaxyard development delivered 120 new affordable homes, including social rent and shared ownership options, alongside community amenities and sustainable construction practices. This underscores the company’s commitment to social value and environmental responsibility in their housing projects across the borough.

While no architect has yet been named for the new key worker homes scheme, and details about the procurement route and contract type are yet to be revealed, the council has scheduled a public consultation to engage community feedback on the proposals. This upcoming consultation, set to take place on 25 June at a local community venue, will play a crucial role in shaping the development.

Southwark Council’s approach reflects a broader commitment to addressing London’s housing affordability crisis by focusing on targeted support for essential workers, ensuring they can live close to their workplaces in Zone 1 and benefit from stable, affordable rents. The new development’s strategic location and mix of housing and community facilities may serve as a model for similar initiatives in other inner London boroughs.

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Source: Noah Wire Services