Southwark (Parliament Politics Magazine) – Sadiq Khan has called in British Land’s 3,700-home Canada Water masterplan after a sharp drop in affordable housing provision raised concerns in Southwark.
After a council report revealed that only 3% of the 3,700 dwellings in British Land’s Canada Water masterplan could be delivered as affordable, Sadiq Khan called in the plan.
The action follows a letter from planning consultancy DP9 to Khan on November 27 on behalf of British Land requesting that the London mayor assume control of the £4 billion megaproject from Southwark council.
According to DP9, the developer and the council have had “prolonged discussions” about the plan, and any additional delay will
“significantly impact on their potential to deliver the substantial benefits that the scheme provides.”
Khan stated that there were “sound planning reasons” for his intervention, including the “significant impact” the development would have on the execution of the London Plan, in his letter to the developer approving the request.
Khan added:
“I must also have regard to targets identified in the development plan,”
adding that in the
“context of London’s overall housing need, the development would significantly contribute towards the delivery of housing in London.”
2,815 dwellings and 4.7 million square feet of retail, office, and recreational space would have been included in British Land’s initial masterplan for the site, which was approved by Southwark council in May 2020. Of these, 35% would have been affordable, with 25% being social rent and 10% being intermediate.
However, the plan underwent a significant modification last year, increasing the number of residences to 3,700, reducing non-residential floorspace to 4.6 million square feet, and raising building heights by up to 13 stories.
The council questioned this study in its own report in March, finding a “series of omissions and gaps” in the data supporting Quod’s assessments. The council hired its own consultant, Stace, to examine British Land’s cost plan after the firm produced a follow-up report correcting these errors.
Stace’s analysis of Quod’s evaluation revealed only slight inconsistencies, but consultant BNP Paribas Real Estate concurred with Quod’s initial conclusions regarding the maximum 3% level of affordable housing in a subsequent report that was commissioned by the council and released in October.
The amount of affordable housing may be raised to 5.46% with a GLA grant of £39 million, according to BNP Paribas Real Estate, whose “assessment indicates that this conclusion is correct.”
British Land and Southwark Council agreed that the program would aim for a 16% profit margin, which served as the basis for the percentage of affordable deliveries.
The letter from DP9 to Khan was sent one day after the amended masterplan’s agreed-upon determination date with Southwark Council’s planning committee was missed. This was the second time the date had been suggested and had passed since the Section 73 application was filed.
On April 30, the modified application’s initial determination period concluded without a planning decision.
Before making a choice, Khan will convene a public hearing on the masterplan to hear opinions from British Land, Southwark Council, and any supporters or opponents. The hearing has not yet been scheduled.
What reasons did Sadiq Khan give for calling in the application?
Sadiq Khan called in British Land’s Canada Water masterplan operation on December 4, 2025, primarily due to enterprises over a drastic reduction in affordable casing provision, from the original 35 threshold in the 2020 figure authorization to just 3- 10 in the revised Section 73 scheme.
The proffers fail to meet Policy H4 (affordable casing) and good growth objectives, with viability claims undermined by rising costs from the Building Safety Act, affectation, and profitable pressures not justifying the cuts amid Southwark’s casing extremity.
As a major development (3,700 homes, 20,000 workspaces over 53 acres to 2036), it warranted Mayoral intervention under call- in powers for schemes exceeding 150 residences or of “strategic significance,” especially with over 1,100 public expostulations.
