Southwark transfers Aylesbury estate plot for residential development

Under the deal, 75% of the new homes must be made available for social rent and at least 50% of the homes must be affordable, the Council agreed at its cabinet meeting. This is a major achievement in the face of government changes to housing policy, the Council said.

Southwark Council's cabinet has agreed to transfer plot 7 of the Aylesbury Estate to its preferred developer, which must build out the site under the terms of the agreement.

The Council recently shortlisted three developers following a tendering process during which interested partied were asked to submit detailed proposals for their redevelopment schemes, along with their financial offers.

"Since the Aylesbury Area Action Plan (AAP) was adopted in January 2010 the council has been working hard to bring forward the implementation of this plan and the delivery of new homes in this area despite the disappointment of the government’s removal of the Private Finance Initiative (PFI)," said Fiona Colley, cabinet member for regeneration and corporate strategy at Southwark Council.

The proposals for the estate include increasing the number of housing units to 4,900. About half of the units would be for social housing and the remainder would be sold on the open market, with the proceeds being used to fund the development.

The estate was originally built to include 2,700 homes, with the capacity to hold 10,000 residents. It was the largest public housing estate in Europe.

In 2005, Southwark announced its decision to demolish the estate and rebuild new homes that would be controlled by a housing association, rather than spend £350 million updating the site to today's standards.

Subject to the Council obtaining vacant possession of the site and the grant of planning permission it is hoped that demolition and then construction work will start early 2013 with the development completing early 2015.