London’s oldest and largest housing association Peabody is looking for a private sector development partner to finance and help build 730 homes as part of the regeneration of South Thamesmead.

Peabody wants to establish a 50:50 joint venture to build phases two and three of the 3.1ha site at Harrow Manorway near Abbey Wood which will be connected to the new Elizabeth cross rail line.

Head of external affairs at Peabody Benjamin Blades said: “We’re already planning future phases of South Thamesmead which will have the same focus on quality, people, and placemaking. We look forward to working with a partner who shares our ambition to put quality and community at the heart of what we do.”

Phase two has outline planning consent for up to 329 homes and up to 1,050 sq ft of commercial floorspace. Phase three is estimated to have space for about 400 homes but is part of a separate outline application currently being determined by Bexley council.

The private sector partner would offer finance, development management and sales and marketing services and may also provide construction services.

Bexley council leader Teresa O’Neill said: “The mixture of new homes, businesses, and amenities will change lives and make a huge difference to the community. It is a great example of the kind of growth we want in the borough.”

Nearly half the new homes will be affordable

Hertfordshire developer Durkan has already completed a third of the 404 flats on the edge of Southmere Lake with the flats currently on the market for sale. This phase already has a new library, community centre, public square, commercial space with nearby podium gardens and children’s play areas.

The Abbey Wood and South Thamesmead housing zone is set to deliver more than 1,600 homes across four sites with 45 per cent dedicated to affordable housing.

Bridging finance brokers Hank Zarihs Associates said development finance lenders would be keen to support the initiative given its location and the future Docklands light railway extension to Thamesmead.

Thamesmead is the same size as central London measuring around 760 hectares, with Peabody owning about 65 per cent of the land and has a population of 45,000.

Over 150,000 new homes could be stalled due to a lack of product testing capacity
UK house prices in September show 12 per cent year-on-year rise