Southwark Council’s denial of a 867‑home scheme at Aylesham marks a rare clash between London’s housing crisis and heritage preservation. The Planning Inspectorate ruled that high‑rise towers would dominate Peckham’s historic core, citing design flaws and low affordable housing percentages.

Berkeley Group, the developer, argues the decision stifles investment and undermines the city’s 1.5 million‑home target. The inspector noted that even a 35 % affordable share would not align with the area’s low‑rise character, pushing the proposal into a “domineering” stance.

Local residents split on the outcome: some praise the council for protecting heritage, while others see the rejection as a setback for urgently needed homes. With the site still derelict, the decision underscores the tension between development viability and historic preservation in London’s planning system, leaving the Aylesham centre stalled.