Reeves has ‘killed’ Old Kent Road regeneration by scrapping Bakerloo Line extension, say developers
A major south London regeneration scheme faces an uncertain future after developers warned that the government’s spending review has “killed” the project by not providing funding for the long-expected Bakerloo Line extension.
Described as ‘fundamental’ to the regeneration project, the Bakerloo Line extension missed out on funding in Rachel Reeves’ spending review on 11th June.
Southwark Council documents indicate that the project was expected to generate at least £100m per year in additional revenue for the authority.
However, developers say the snub has rendered the area undevelopable, putting 25,000 planned homes and 10,000 jobs at risk.
Bakerloo Line extension
First proposed back in 2014, the project would see the line extended from Elephant and Castle down to Lewisham, and include two new stations along Old Kent Road.
Transport for London (TfL) and Southwark Council have championed the plan as essential to unlocking new build housing and improving connectivity across the area.
According to Southwark Council, the full regeneration programme would have delivered 25,000 new homes, with 35 per cent of them being earmarked for affordable housing, and generate more than £100m annually in new council tax and business rates once completed.
But the lack of central government support for the major infrastructure project has left developers reeling.
“To be honest, they’ve killed Old Kent Road,” said Aron Lipschitz of the Shaviram Group, a developer with plans in the area.
“If there’s no stations, no infrastructure, then there’s no project. All we have is a monopoly name that nobody wants.”
He continued: “The minute councils become your partner, they want half your housing for social rent. It doesn’t make any sense. It is very difficult to develop in this country, there’s no money in it.”
Jace Tyrrell, from Innovate London, part of Opportunity London, who are looking to bring in billions of investment to London said: “We are going to have to find new investment, institutional investment from around the world to turbo charge London’s housing,” as the spending review signalled they could no longer rely on government backing for major projects.
Critics say the move exposes a disconnect between the Government’s national housing ambitions and the realities facing developers.
Old Kent Road: 25,000 new homes now at risk
The Bakerloo Line extension has long been touted as a way to unlock 25,000 homes across Lewisham and Southwark, whilst cutting emissions, easing congestion, and creating at least 10,000 jobs.
TfL has already carried out several consultations on the plan, and says that thousands of residents have expressed their support. Southwark Council’s own consultations backed the scheme.
While the government did not comment, it is understood that officials see housing delivery in London as a priority, with targets set at 88,000 homes per year.
Ministers are said to view investment decisions on transport infrastructure, such as the Bakerloo Line extension, as matters for the Mayor and Transport for London.
But, Aron is less hopeful, saying: “The only person who believes in 1.5m new homes is sitting in the wrong place. Developers know it’s much harder.”
With development stalling and housing targets slipping out of reach, the future of Old Kent Road may now depend on whether or not the Government will invest in London’s infrastructure.