Planning Inspector Matthew Shrigley has dismissed Berkeley Homes' appeal to redevelop the Aylesham Centre in Peckham, ruling that the proposed scheme would cause unacceptable harm to the area's heritage and townscape. The decision, published on 19 May 2026, brings to a close a lengthy planning dispute that has drawn sustained opposition from community campaigners and Southwark Council.
The Appeal and the Inspector's Findings
Berkeley Homes submitted its appeal on grounds of non-determination after Southwark Council failed to reach a decision on revised plans submitted in December 2024. A public inquiry was held in autumn 2025, with the inspector delivering his decision the following spring.
The proposal included 867 homes, retail and commercial space, and buildings rising to 20 storeys. Inspector Shrigley identified the main issues as the development's height, scale and massing; the loss of retail floorspace; and the adequacy of affordable housing provision.
In his ruling, the inspector found that the scheme "would cause harm to nearby designated and non-designated heritage assets, as well as the local townscape." Significantly, he concluded that even if the development had met the London Plan's 35 per cent affordable housing threshold rather than the 12 per cent actually proposed, "the level of harm in this case would not be overridden." On retail, he determined that the loss of floorspace "would not harm the vitality and viability of the town centre."
Affordable Housing and Viability
The scheme's affordable housing offer attracted particular scrutiny. Berkeley's plans reduced the London Plan minimum from 35 per cent to just 12 per cent by habitable rooms, citing viability constraints. Inspector Shrigley accepted the developer's "underlying viability position" but nevertheless found the heritage and townscape harms sufficient to warrant refusal.
The Aylesham Centre, located on Rye Lane in Peckham SE15, is owned by Berkeley Group, the FTSE 100 housebuilder founded in 1976 and headquartered in Cobham, Surrey. Under Southwark Plan Site Allocation NSP 74, the site had been earmarked for regeneration, with an indicative timeline that would have seen the Morrisons supermarket completed first, followed by housing phases between 2025 and 2027, and full completion by 2034.
Community Campaign and Council Opposition
Aylesham Community Action has campaigned against the scheme for several years, organising community drop-in sessions at Peckham Library, Nunhead Library and All Saints Church in November 2024 to gather local feedback.
Reacting to the decision, Siobhan McCarthy of Aylesham Community Action said: "The inspector puts it in black and white: this [is a] generational opportunity for Peckham." The group has consistently argued that the site should be developed in a manner that respects Peckham's character and delivers genuine community benefit.
Southwark Council strongly opposed the scheme at the public inquiry. Council Leader Councillor Sarah King described the ruling as "a great day for Peckham," stating: "The scheme was poorly designed and our position has been vindicated."
New Political Context
The appeal decision comes amid a shifting political landscape in Southwark. The local elections held on 7 May 2026 produced no overall control, with Labour winning 29 seats, the Green Party 22, and the Liberal Democrats 12. On 28 May 2026, the Green Party and Liberal Democrats formed a Joint Administration, with Councillor James McAsh (Green) becoming Council Leader and Councillor Victor Chamberlain (Lib Dem) serving as Deputy Leader.
The new administration's joint priorities include building more council homes and ensuring that "new developments must deliver more affordable housing." The Aylesham ruling may signal how planning decisions will be approached under this new leadership.
What Happens Now
With the appeal dismissed, Berkeley Homes will need to submit fresh proposals if it wishes to proceed with the site's redevelopment. The inspector's ruling establishes clear parameters: any future scheme must address heritage and townscape concerns more convincingly, and the affordable housing shortfall that characterised the rejected plans is unlikely to be viewed favourably by either the council or community stakeholders.
For Peckham residents, the decision preserves the area's low-rise character for the time being. The Aylesham site remains one of the most significant regeneration opportunities in Southwark; the challenge now is to shape a development that delivers genuinely affordable homes without compromising the heritage assets and townscape that define this part of the borough.