Hundreds of affordable homes lost in Camden

Hundreds of affordable homes originally promised for major Camden developments have been lost or are at risk after developers sought reductions to housing quotas, citing worsening economic conditions. The changes affect significant regeneration schemes across the borough, raising concerns among residents and local councillors.

Reduced quotas on key sites

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At the eight-acre Camden Goods Yard development, revised plans approved on appeal in May saw the number of affordable homes slashed from 203 to 83. On Thursday, Camden Council approved revised plans to cut affordable housing at the O2 Centre site from 570 homes to 330, as part of its 1,800-home development.

A spokesperson for Landsec, the developer behind the O2 Centre site, stated that "the economic reality" had shifted since its plans were first approved. They cited higher interest rates, increased construction costs, and more complex regulations as reasons for housebuilding across the capital being 90% below target. The spokesperson added that the updates were designed to respond to these wider changes and enable delivery, while still providing homes, green space, and long-term benefits.

Similarly, a Whitehall planning inspector ruled in favour of developer Berkeley St George in May, allowing a reduction in affordable homes from 32% to 13% at the 636-home Camden Goods Yard Project. This resulted in a net loss of 120 affordable homes.

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Housing crisis and waiting lists

According to a Camden Council report, the local authority is in a "unique crisis of affordability." The borough has a chronic shortage of housing, with 8,380 people on the waiting list for social housing in 2025. In the 2025-26 period, just 84 affordable homes were started in Camden, a figure among the lowest in London. Schemes to deliver more affordable housing have been hampered by disputes with developers seeking to reduce housing quotas.

Farrell Monk, a Liberal Democrat councillor for Fortune Green ward, commented on the O2 development, stating: "It's developers exploiting the system, and its residents on the housing register who pay for it."

Businesses displaced for regeneration

The regeneration of Camley Street, a key part of Camden Council's response to the housing crisis, has led to the displacement of long-standing businesses. Transauto, a vehicle repair shop that had operated in Camley Street for over 40 years, was forced to leave in January to make way for the scheme. Trish Thomas, who ran the business with her father, said there was no assistance provided for relocating them.

Paolo and his father Adolfo, who ran BMW Auto Services in Camley Street for 40 years, were also displaced in January. Paolo described the personal cost of being made to leave as "at least £100,000," adding that he had to make a mechanic redundant and he and his father were unemployed. He noted that nearly six months after vacating the site, no work had begun.

Camden Council stated it had given "each business tailored support," including financial compensation, rent-free periods for garages, extended timelines to vacate, and a commitment to securing long-term solutions. The council added that it would "consider evidence-based requests for additional assistance on a case-by-case basis" and that it was in contract with a demolition contractor for preparatory works.

Next steps

On 16 July, the Mayor of London, Sir Sadiq Khan, introduced borough-specific affordable housing goals to stimulate housebuilding. Under this new draft plan, Camden Council's affordable housing threshold increased from 20% to 35%. City Hall stated these measures would "maximise the number of affordable homes being built during this difficult period."