Landsec pauses Lewisham Shopping Centre rebuild a year after approval
The owner says it is 'deprioritising' the scheme for 1,744 homes, citing tough economic conditions and a council push for more affordable housing.
Landsec has put its redevelopment of Lewisham Shopping Centre in South East London on hold, a year after councillors granted planning permission for the scheme.
The company, which owns the centre, said it is "deprioritising" the project because of "exceptionally challenging economic conditions" and will focus on other schemes. A Landsec spokesperson said: "Today's news does not mean that we're leaving Lewisham." The firm said it will instead operate and invest in the existing centre.
Lewisham Council's Strategic Development Committee approved plans in October 2025 for 1,744 flats, student accommodation and a new mall across 17 acres. The scheme would have replaced the 1970s mall and a multi-storey car park with towers of up to 35 storeys. Of the homes, 98 were to be for social rent and 231 at discounted market rents or for key workers. The plans also included 661 student rooms and a 23-storey co-living block of 445 homes.
The project was split into six phases over 10 years, with work due to begin next year, and had a reported cost of £1.3bn to £1.7bn. According to Landsec, rising borrowing and build costs, along with tougher regulation, have left London development "increasingly challenging". The company also said the council had indicated it would not back the next stage of land assembly unless affordable housing rose significantly, which Landsec said would mean major changes and long delays.
Landsec needed to control the whole site before starting the first phase, including Lewisham House, the former Citibank tower, where a long lease is held by Guernsey-based developer LHN1. Mayor of Lewisham Liam Shrivastava has said any use of compulsory purchase powers must have a clear and compelling public benefit. He said: "The fact is the conditions for such projects are simply not favourable right now."
The mayor said the council would keep working with Landsec on the town centre and pointed to its £24m improvement programme. Campaign group Lewisham People's Assembly, which opposed the plans, said it was "very pleased" and called for development that better meets community needs.
