New plans for the O2 Centre site 

A DEVELOPER behind a 1,800-home regeneration of the O2 Centre site has revealed plans to slash 280 social housing units from the project – and delay starting any building works by up to five years.

The land close to the Finchley Road, where the first homes were supposed to be built, will instead become a temporary home to ten padel courts, a sauna and a golf pod.

Landsec – the largest corporate property investment company in the country – said on Monday it intends to “align with new government and mayoral emergency housing measures”.

To this end, it says it can only make 20 per cent of the entire project “affordable”.

The quota of social housing homes agreed in 2023 by Camden Council’s planning committee had been set at 35 per cent, meaning 630 homes would be social housing – but this is now set to be dramatically reduced.

The developer has been given scope to tear up its affordable homes quota after a policy switch announced by London Mayor Sir Sadiq Khan and the government just before Christmas.

Liberal Democrat councillor Janet Grauberg said: “West Hampstead residents will be really angry. Camden’s Labour Council already approved development plans which breached their own policy for 50 per cent affordable housing.

“And now developers like Landsec have been told by the Labour Government and Labour Mayor of London that 20 per cent affordable housing will be acceptable. This is adding insult to injury.”

The shock change of plan came in the same week that a planning application to build the 10 padel courts on the O2 Centre Masterplan site – the former Homebase store – was lodged at the Town Hall.

Works to build the first phase of the housing – around 650 homes – on that section of the land were supposed to start this year.

If consent is granted, the padel courts can stay for up to five years as a “meanwhile use”.

The reduction in affordable housing is a familiar move in Camden.

The previous developers at 100 Avenue Road in Swiss Cottage asked to cut the number of cheaper homes in its tower block scheme, while Camden is locked in a dispute with Berkeley St George over its wish to reduce those available at the major Camden Goods Yard development in Chalk Farm.

Now, with the O2 site changes, Landsec said it has not been “immune” to the perfect storm of problems that has created the “most challenging housing market in decades”.

New images of what the final development could look like were released this week

It said construction costs have increased, regulatory requirements have expanded and interest rates remain high, contributing to a slowdown in housing delivery across the capital.

By significantly increasing the number of private for-sale homes, profits will increase to levels it finds acceptable.

Development Director Tim Trillo said: “By refining our proposals, we are ensuring we can deliver this transformation, allowing us to unlock the incredible benefits of this Masterplan and creating high-quality homes and public spaces.”

West Hampstead’s Labour ward councillor Sharon Hardwick said: “This is clearly disappoint­ing news. I will continue to press for affordable homes that genuinely meet the needs of local families and I will continue to challenge decisions that fall short of that standard. “I am pleased that the majority of the affordable homes on the plan are two- and three-bedroom properties, which are much needed.”

A council statement said the Town Hall would be “carefully scrutinising the O2 proposals which were submitted this week and which are currently out for consultation against local, regional and national policies”.