Less than a quarter of homes on the new phase of Greenwich Peninsula development will be “affordable”, according to planning documents released by Greenwich Council last night.
Greenwich planners are recommending councillors approve the scheme at a meeting on Tuesday 8 September. Just 22.7% of homes of the 12,678 won’t be sold at full rate, the 320-page planning report reveals.
The original masterplan for the peninsula, agreed in 2004, envisaged 40% of homes being “affordable”.
But that stalled, and Hong Kong-based developer Knight Dragon – controlled by billionaire Dr Henry Cheng – which is now in charge of the scheme, has taken a much more aggressive approach to developing the huge site.
It controversially persuaded councillors to allow it no “affordable” properties at all on the plots nearest Canary Wharf, Peninsula Quays, leading to a legal row which resulted in Greenwich being forced to reveal the viability assessments it used to make the decision.
Greenwich has published the viability assessment for the new scheme, where consultants Christopher Marsh and Company pinpoint withdrawals of grants by the last government as a factor in the low figure.
“Some agency, or several, will receive significant sums via the original land agreement, and currently, none, it would appear, are prepared to re-cycle any share of those receipts back into affordable housing in Greenwich. That is a key driver in this case. Before February 2014, when Government largely abandoned grant aid to affordable housing, we would have expected most schemes to have exceeded 30% affordable housing. Without grant, that expectation has now been reduced by about one third.”
A further document from BNP Paribas compares the Peninsula scheme with property values at the Royal Arsenal in Woolwich – an improvement on the Peninsula Quays scheme where values across the whole borough were used, despite the unique nature of the site.
The document indicates that the headline figure for new homes remains 12,678, with towers of up to 40 storeys.
A quick skim through the papers would appear to indicate Greenwich planners have largely accepted Knight Dragon’s transport proposals, despite fears from a raft of local groups and even Transport for London that they will pile additional pressure onto North Greenwich station. An early reference to the “Silvertown Tunnel Rail Link” suggests that planners may not totally be on the ball here.
TfL says: “Jubilee Line crowding is already an issue and is forecast to continue in 2031. The additional crowding on Jubilee Line services is considered an issue. TfL cannot agree that the London Underground (LU) and National Rail networks would be largely unaffected by the proposed development.”
Indeed, council planners shrugged off calls for a pedestrian and cycle connection to Canary Wharf to relieve the Jubilee Line in just a sentence – “the feasibility of a pedestrian link between the Peninsula and Canary Wharf has been investigated previously but it is not considered feasible” – presumably a reference to an 2010 assessment by TfL produced to justify the construction of the Thames Cable Car, which said a bridge would not bring in any income.
The only explicit mass public transport improvement appears to be funding for a bus from Kidbrooke Village to North Greenwich – which is likely to pile even more pressure on the Jubilee Line.
There’s a lot to wade through, but it’s hard to see quite where Greenwich has tried to strike any worthwhile bargain with Knight Dragon. The big question remains – will the council’s planning board swallow Dr Cheng’s prescription?