The Evening Standard, usually a reliable cheerleader of the Battersea Power Station redevelopment, reports that the already limited affordable housing commitment is being slashed in half.
The argument appears to be that as the bottom is falling out of the luxury homes market because of entirely predictable problems of over supply, the developers can no longer afford to build the sort of homes that people actually need. The commitment had originally stood at more than 600. By the time I wrote Up In Smoke, my book about the history of Battersea Power Station, this had been reduced to 565 units – around 15 per cent of the total number of new flats. Some of these have since been moved to another location – ie, nowhere near the posh flats going up round the power station itself.
The Standard says the developers now want to build only 386 affordable homes – around 9 per cent of the final residential offering. That’s because following escalating costs caused by Brexit, they need to focus their finance on renovating the power station itself and building the new Northern Line extension. It’s the sort of trick used by developers all around the country as they attempt to weasel their way out of already meagre commitments, and at Battersea they can do this without making a new planning application or holding a public consultation by using a “deed of variation”. Conservative Wandsworth Council, whose commitment to a developer-led solution to the power station has been steadfast despite three decades of excruciating and occasional hilarious disappointment, are unlikely to object.
Ah, the irony. When I interviewed the amiable Rob Tincknell, the development’s chief executive, in 2014, he boasted it was only the developer’s commitment to the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units.
Now the argument is reversed. Because they have to build the NLE, they can’t afford to build as much affordable housing. It’s a classic piece of power station sophistry to match that of the recent decision to transform some planned residential units into commercial, despite earlier assurances that they having developed the perfect ingredients for a mixed use scheme they’d be fools to change their minds.
Tincknell told me in 2014 via email: “BPS makes its section 106 planning contributions in two ways. The first is a ￡200m plus contribution to the Northern Line extension (NLE), the second is 15% affordable housing or 565 units – the largest amount ever built in Central London.
The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double. Therefore, without the NLE the density at BPS would be about half (like the previous planning consent) and therefore even if there was a higher level of affordable, say 30%, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”
Suddenly, all that has changed.
The developers claim they hope to restore the missing 250 units at the end of the build.
I wouldn’t hold your breath.
Tincknell’s was CEO of the previous developer, Treasury Holdings, who based their application on paying for NLE, which they costed at £250.000. It is now predicted to cost one billion – TfL figures. An extension of the Northern Line to serve flats lived in by people who are unlikely ever to use it, and which will cause untold and lasting disturbance to residents, not of Tory Wandsworth (so keen to let all the developer’s schemes past – did you know that the developers are paying for a post in W’worth planning office?), but of Labour Lambeth
Affordable housing can apparently be cancelled if it can’t be financed because of a change in circumstances. So, either the affordable housing should be listed as hoped for rather than definite, or else the public is taking a risk that should be borne by the developer.
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