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| Battersea Power Station developer slashes number of affordable homes | Battersea Power Station developer slashes number of affordable homes |
| (12 days later) | |
| The developer behind one of London’s biggest luxury property projects has nearly halved the number of affordable homes it plans to build on the site. | The developer behind one of London’s biggest luxury property projects has nearly halved the number of affordable homes it plans to build on the site. |
| The £9bn revamp of Battersea Power Station in central London has slashed the number of affordable flats to just 386, a 40% reduction from original plans. | The £9bn revamp of Battersea Power Station in central London has slashed the number of affordable flats to just 386, a 40% reduction from original plans. |
| Previously, the plan was to construct 636 homes affordable homes targeted at local residents, first-time buyers and renters, with locals promised a 40% discount on the average market rent. The affordable home proposals amounted to 15% of the total 4,239 homes planned, which included luxury pads ranging from £800,000 for a studio atop the former power station to £4m for a four-bedroom flat (the three penthouses have yet to be priced). | Previously, the plan was to construct 636 homes affordable homes targeted at local residents, first-time buyers and renters, with locals promised a 40% discount on the average market rent. The affordable home proposals amounted to 15% of the total 4,239 homes planned, which included luxury pads ranging from £800,000 for a studio atop the former power station to £4m for a four-bedroom flat (the three penthouses have yet to be priced). |
| Under the latest plans (pdf), which are expected to be approved by Wandsworth council on Thursday, the proportion of affordable housing will fall to 9%. | Under the latest plans (pdf), which are expected to be approved by Wandsworth council on Thursday, the proportion of affordable housing will fall to 9%. |
| Battersea Power Station Development Company, backed by a group of Malaysian investors, argues that the entire project may become financially unviable if it sticks to its previous plans. It cited “technical issues” relating to the restoration of the Grade II listed power station and cost increases, partly caused by the weaker pound. It has also been hit by the slump in the luxury home market. | Battersea Power Station Development Company, backed by a group of Malaysian investors, argues that the entire project may become financially unviable if it sticks to its previous plans. It cited “technical issues” relating to the restoration of the Grade II listed power station and cost increases, partly caused by the weaker pound. It has also been hit by the slump in the luxury home market. |
| To compensate for the planned reduction, the developer said it would build the 386 affordable homes three years earlier than previously envisaged, which means residents will receive their keys in 2020. They will be located in apartment blocks near the power station. | To compensate for the planned reduction, the developer said it would build the 386 affordable homes three years earlier than previously envisaged, which means residents will receive their keys in 2020. They will be located in apartment blocks near the power station. |
| The other 250 affordable homes that had been originally planned will only be built after an “end of scheme review” – an assessment of the profits the developer expects to make. Independent adviser BNP Paribas advised the council that it is “very unlikely” that the 250 homes will materialise. | The other 250 affordable homes that had been originally planned will only be built after an “end of scheme review” – an assessment of the profits the developer expects to make. Independent adviser BNP Paribas advised the council that it is “very unlikely” that the 250 homes will materialise. |
| The London mayor, Sadiq Khan, responded to the news, first reported by the Evening Standard, by tweeting: “I am extremely concerned about plans to reduce affordable housing at Battersea Power Station. We need more affordable housing, not less.” | The London mayor, Sadiq Khan, responded to the news, first reported by the Evening Standard, by tweeting: “I am extremely concerned about plans to reduce affordable housing at Battersea Power Station. We need more affordable housing, not less.” |
| The plans had been referred previously to the Greater London Authority, which is headed by the mayor, but it did not intervene. | The plans had been referred previously to the Greater London Authority, which is headed by the mayor, but it did not intervene. |
| A spokesman for the mayor said he did not have planning powers to intervene as the proposals are not a full planning application. “However, he will be writing to Wandsworth planning committee urging them to thoroughly scrutinise the application,” said the spokesman. | A spokesman for the mayor said he did not have planning powers to intervene as the proposals are not a full planning application. “However, he will be writing to Wandsworth planning committee urging them to thoroughly scrutinise the application,” said the spokesman. |
| BNP Paribas concluded that reducing the amount of affordable housing would be “consistent with the council’s priorities for the site”. A report by the Wandsworth council planning officer recommends that the proposals be approved, ahead of a meeting of the planning committee on Thursday evening. | BNP Paribas concluded that reducing the amount of affordable housing would be “consistent with the council’s priorities for the site”. A report by the Wandsworth council planning officer recommends that the proposals be approved, ahead of a meeting of the planning committee on Thursday evening. |
| The report says: “Officers appreciate the level of stresses a scheme of this size and complexity has and that the main priorities of the scheme have been the conservation and redevelopment of the listed power station building, the delivery of the Northern Line extension and new underground station and the jobs to be created as part of the new town centre.” | The report says: “Officers appreciate the level of stresses a scheme of this size and complexity has and that the main priorities of the scheme have been the conservation and redevelopment of the listed power station building, the delivery of the Northern Line extension and new underground station and the jobs to be created as part of the new town centre.” |
| However, Keith Garner, a local architect who has campaigned against the Battersea project for years, said: “Underlying it, the financial model is all wrong. A developer-led project to conserve, repair and bring back in to use a famous London landmark is turning in to a predictable disaster.” | However, Keith Garner, a local architect who has campaigned against the Battersea project for years, said: “Underlying it, the financial model is all wrong. A developer-led project to conserve, repair and bring back in to use a famous London landmark is turning in to a predictable disaster.” |