Plans to build more than 1,200 homes around the Ikea store in Greenwich have been withdrawn by a developer due to “spiralling costs” of construction and building materials.
The scheme, called Peninsula Gardens, would have added 1,290 new homes to the east Greenwich area.
As part of the proposals, the site’s B&Q store would have been demolished and the Ikea car park reduced by more than 200 spaces.
But a message posted on Greenwich council website confirmed that the planning application had been withdrawn on Tuesday.
A spokesperson for London Square told the Standard: “We have decided to review our current planning application for Bugsby’s Way, Greenwich, which comprises a mixed use redevelopment of the site, with over 1,000 new homes across a series of apartment blocks, a new public square and new commercial floorspace.
“We are assessing the viability of the development, in the light of spiralling costs in construction and building materials. We may then look at submitting a revised application in the future.”
David Gardner, a councillor for Greenwich Peninsula, tweeted: “Delighted that London Square have now withdrawn their Peninsula Gardens application for B&Q and car park - hope they will come back with an enhanced lower-rise scheme with less parking working with local residents.”
The scheme would have seen blocks of up to 16, 17 and 20 storeys constructed on the site.
London Square had promised to “transform” the existing site through the new development and “create a new neighbourhood that will deliver new homes, cafés, shops and new pedestrian-friendly spaces”.
However, the developer conceded that the site “may impact” the setting of the Maritime Greenwich World Heritage Site and conservation areas including Greenwich Park.
In its planning and affordable housing statement, London Square said the development was also necessary as the Council would find it “extremely challenging to deliver sufficient homes to meet its minimum annual housing requirement of 2,824 homes per year”.
It also noted an “acute need for new homes across the Borough and London more generally”.
Proposals were consulted on in July 2021, with a complete proposal submitted to Greenwich Council last spring.
Around a quarter (24 per cent) of the homes would be for London Affordable Rent, meaning they would be available for around half of market rent, the newspaper said.
Data published by City Hall last month found that nearly 1,000 homes across Greenwich had been left empty for more than two years.
Separate figures from the Land Registry showed that average house prices in the Borough had increased by an average of £7,000 in the month of February, with the average price of a property in Greenwich reaching £446,652.
