Alumno Developments has negotiated a landmark deal with Southwark council to create a 221-bed student accommodation block, without committing to providing 35% of the scheme as affordable housing.
The developer has concluded nine-month dialogues to secure permission for the Hampton Street, SE1 project, which will provide students at the University of Arts, London, with below current equivalent market rents.
This is the first planning decision to be granted following the council’s implementation of an affordable housing policy, which requires 35% of homes to be affordable.
Alumno claimed this could equate to around £8.6m, and was too high. Instead it has agreed to provide “incubation” workspace for students and significant public realm improvements, as well as a much smaller cash sum.
Duncan Parr, director of planning at Savills, said: “Given the complexities and challenges the affordable housing policy throws up, this planning consent will assist in setting a benchmark and precedent which will hopefully allow further proposals to be considered appropriately.”
He added: “This decision confirms that we can now clearly draw a distinction between the tenures within student housing and that there is an emerging tier of affordable student housing in its own right which must be recognised and will benefit the universities and colleges operating in these uncertain times.”
GVA and Savills advised Alumno.
joanna.bourke@estatesgazette.com
