Developer seeks to drop affordable housing on-site in Greenwich

A proposed student scheme in east Greenwich on Woolwich Road could see on-site affordable housing dropped under a newly revised plan.

AVF Developments is looking to alter a Section 106 agreement signed earlier this year for blocks on the former Speedy Hire site at 141 Woolwich Road.

They’re offering a payment in lieu instead of 35 per cent affordable rooms on site. A total of 67 affordable student beds were previously agreed. In addition they want to remove a late-stage review mechanism relating to affordable provision.

Instead of the of the previous rooms they’re offering £1,216,782.

Four reasons are given for proposed changes:

• Higher interest rates have increased development funding and investor borrowing costs.
• A decline in overseas student numbers has reduced PBSA demand, rental growth, and university growth plans.
• Design amendments to meet BS 9991:2024 fire safety requirements have added significant costs and reduced gross development value (GDV).
• Ongoing increases in operational costs have further reduced GDV.

Previous plan

You may recall the initial plan was for flats on site. They emerged five years ago and covered on this site back then.

It was approved in 2022 then sold in 2023. New owners then revised plans in 2024 which were again approved.

Now we are seeing the latest revision in terms of housing tenure. The site has sat empty for years now as Speedy Hire departed, people lost jobs and the site sits neglected. An all too familiar story.

The application to remove on-site affordable rooms states: “It is important to note that the Applicant’s affordable offer would remain at the policy level of 35%; the only difference being that the contribution will be entirely financial, rather than on-site.”

It’s for Greenwich council to now decide whether the loss of 67 affordable student beds on-site is mitigated by £1.2 million.