This would reduce the number of affordable homes built on the site from 270 to 77.
Cllr Helen Dennis, Cabinet Member for New Homes and Sustainable Development, said: “There is a huge need for more genuinely affordable homes in Southwark, and it’s very disappointing that Berkeley Homes has lowered its offer of affordable housing on the Aylesham Centre site.
“Peckham is one of many areas in our borough with a severe need for genuinely affordable homes. There are more than 4,000 households in Peckham and the nearby area on the waiting list for social housing. Good homes transform lives, and every affordable home not built is a lost opportunity to give local people a decent place to live.
“The new proposal would also see the loss of a Community Land Trust, which would provide community-led housing and is part of the Local Plan site policy for the Aylesham Centre site.
“We are clear about our expectations that all planning applications in Southwark must meet the needs of our borough, including our policies and requirements for green space, local business, transport and genuinely affordable housing.
“This is a live planning application and I cannot comment further.”
The revised affordable housing offer from Berkeley Homes will be reported to Southwark Council’s planning committee, which will fully assess the application against all Southwark’s relevant planning policies before deciding the planning application.
The application is due to go to the council’s planning committee in Spring 2025.