Councillors in Lewisham have approved plans to demolish the existing shopping centre, built in the 1970s, and replace it with a large-scale redevelopment featuring 1,744 new homes, a new shopping mall, 660 student beds, and 445 co-living residences. The decision, which came amid heated public opposition and the barring of two sceptical councillors from the vote, marks the beginning of a £1.5 billion transformation project led by Landsec, aimed at revitalising the town centre.

The approved masterplan includes residential towers reaching up to 35 storeys, although some low-rise buildings facing Lewisham High Street will remain. Only 98 of the new homes will be designated for social rent, with an additional 231 units offered at discounted rents primarily targeting key workers. These figures fall significantly short of Lewisham Council’s 50 percent target for affordable housing, a point that drew criticism from campaigners and some councillors alike. The council’s major and strategic planning manager, David Robinson, explained that increasing affordable housing beyond 16 percent would render the scheme financially unviable, though he noted that there are planned reviews to potentially raise this percentage over time.

The development proposal emphasises a phased approach intended to minimise disruption to existing tenants and retail operations. Landsec representatives highlighted the effort to maintain the shopping centre’s current retail offer throughout the process, with tenants such as Sainsbury’s and Primark expected to stay. Additionally, the development will introduce new jobs, community facilities, and green spaces, including an eight-acre public park with an urban meadow designed to enhance biodiversity and provide a welcome natural environment in the town centre. A 500-seat cultural venue will also be a key feature, supporting Lewisham’s local arts scene.

Despite these benefits, opposition remains strong. Critics argue that the project’s financial assessments reveal significant deficits, casting doubt on its deliverability. A rival developer, Lewisham House No 1 Ltd (LHN1), which holds a long lease on the nearby Citibank tower, expressed concerns that Landsec’s plans rely on compulsory purchase orders to incorporate this building, which LHN1 has own redevelopment plans for. Lewisham House would be converted into flats under both developers’ visions, but competing approval statuses complicate the matter. The rival developer insists their own scheme can deliver a vibrant co-living community more quickly and with better alignment to council affordable housing policies.

Residents and housing campaigners lament the limited immediate provision for truly affordable homes amid ongoing levels of homelessness and temporary accommodation in the borough. Organisers of the Save Lewisham Shopping Centre campaign remain vocally opposed, warning that the approved plans rest on speculative promises. They emphasise the pressing need for genuinely affordable housing solutions in the face of Lewisham’s housing crisis.

In the council chamber, the vote split along party lines, with six Labour councillors supporting the scheme and Green councillors unable to participate in the final vote due to procedural technicalities after a brief break. Labour councillors justified their decision by citing years of work on the comprehensive proposal and the urgent need to increase housing supply, highlighting even the modest addition of one more home as significant given the borough’s homelessness challenges.

Looking ahead, the redevelopment is expected to span around a decade, gradually reshaping Lewisham town centre into a more mixed-use and sustainable urban environment. The project promises to generate substantial local economic benefits, with estimates suggesting an annual contribution of £160 million once complete. Landsec emphasises the long-term investment nature of the scheme, maintaining it is a meaningful contribution to housing delivery goals set by government and Greater London authorities, albeit not a sole solution to the borough’s housing needs.

Environmental and transport considerations are also on the agenda. The masterplan integrates extensive green spaces and seeks to incorporate pedestrianised zones with dining and entertainment venues, although local advocacy groups such as Lewisham Cyclists have called on the council and Transport for London to enhance cycling provisions in and around the site to support active travel, which current proposals do not sufficiently address according to their campaign.

Overall, while the redevelopment secures official backing, tensions remain high between economic feasibility, community needs, affordable housing provision, and rival development ambitions, making the project one of Lewisham’s most contentious urban renewal efforts in recent years.

📌 Reference Map:

Source: Noah Wire Services