Landsec’s blocked £.5bn shopping centre plan leaves Lewisham in the worst of all worlds

Lewisham’s £1.5 billion shopping centre redevelopment has been halted due to a disagreement between Landsec, the property company that owned the centre, and the Council. The redevelopment, which was approved in October 2025, was set to begin in 2027. Now, no one knows when or if any construction will take place. Landsec cited two reasons for the halt: London's high building costs and the Council's inability to provide sufficient support for the next phase of land assembly without increasing affordable housing.

Lewisham's mayor, Liam Shrivastava, acknowledged that the current conditions for such developments are unfavorable and emphasized the importance of building social housing to address the housing crisis. However, the plan to replace the shopping centre with 1,744 homes, including 98 affordable and discounted units, will no longer proceed. The shopping centre development took five years to approve, and it is doubtful that the council will follow through on it anytime soon.

Several businesses have already left the area, including Boots, which moved its unit to inside the centre, and Marks & Spencer, which closed permanently. Natwest also announced it would close its branch, while the Model Market food hall remains closed. Landsec itself stated that the 1970s building is no longer fit for purpose. Labour, which approved the scheme, and the Greens, currently running the Council, are blaming each other, while the mayor blames the government. However, finger-pointing will not solve any of the issues.

Lewisham is suffering beyond just the shopping centre, as the Filigree at Lewisham Gateway, a housing development of 649 homes, has remained empty since a flood in February 2025. Residents are left without guidance on food waste collection, with bins arriving without instructions and no scheduled collections. The council's website is also unclear about whether the flats are receiving the necessary services.

This situation extends beyond SE13, as London needs long-term investment and support from local councils to construct homes. To address the current turmoil, the council must be transparent with residents about its intentions and provide a support plan for affected traders. Most importantly, it should outline its own plan for Lewisham town centre, showing what would be built, who would construct it, and when.

The town centre cannot remain in limbo; residents were promised new homes, a new community, and a revitalized town centre. The council must rebuild trust before any construction can begin.