Key workers will be offered affordable homes in a new, purpose-built housing complex spearheaded by Southwark Council.
Around 100 flats will be built on the site of the Beormund Community Centre in Bermondsey under the proposals.
Southwark Council would establish a replacement community facility on the ground and first floor of the new development.
A Southwark councillor said key workers were “the backbone of our city”, adding that there was “market appetite” for the project.
Once the proposals are rubber-stamped, Southwark Council will begin looking for a development partner to design and build the scheme.
The developer would then manage the building over a 40-year lease. If the lease is not extended, the land and buildings would return to council ownership.
Nurses, social care staff and teachers would benefit from short-hold tenancies let at London Living Rent – roughly two-thirds of average market rates.
In October 2023, rent for a two-bedroom London Living Rent home was £1,240 compared to £1,877 on the market, according to the Office for National Statistics.
The site at 177 Abbey Street has been selected because it is next to Zone 1. It also has good transport links and is within walking distance of Southwark’s primary service sectors.
Despite being praised by royals and prime ministers for its work, the Beormund Community Centre closed in 2020.
Southwark Council pulled the plug on funding saying it offered poor value for money, sparking a bitter row between the centre and the Labour-run authority.
Visitor numbers dwindled during lockdown, according to council bosses. They also said the centre had made no effort to provide community services during the pandemic.
Consequently, the council decided to pull their remaining funding for the centre – worth £50,000 a year.
Ahead of the community centre’s re-establishment, features from the Beormund Community Centre have been salvaged, including light fixings and handrails.
They could be re-used in the new building from which community events and activities will run.
Southwark Council has committed to delivering 500 key worker homes by 2026.
These types of properties are characterised by rolling short-let tenancies at sub-market levels for essential workers.
Southwark Council is expected to sign-off on the proposal at its cabinet meeting on Monday, July 22.
Councillors Sunil Chopra, Sam Dalton and Emily Hickson, ward councillors for London Bridge and West Bermondsey, said: “We’re really excited to see great new homes for key workers being planned in our ward, making London Bridge and Bermondsey more affordable for people who contribute so much to our community, whether in health, education, social care, or other professions.
“We have campaigned hard for a new community space to replace the former Beormund Community Centre, and it will be brilliant to have a modern facility that enables local residents to come together and take part in a wide range of events and activities.
“In recent months we’ve held two meetings with local residents to get their views on this new development, and we look forward to continuing to work closely with the community as these exciting plans progress.”
Cllr Helen Dennis, Cabinet Member for New Homes and Sustainable Development, said: “Keyworkers are the backbone of our city, but now it’s harder than ever to find affordable housing within easy reach of work for many teachers, social care staff and healthcare workers, to name a few.
“In Southwark, we promised we would look after the keyworkers who look after us by building them dedicated housing that was genuinely affordable. But councils have long been at the mercy of a broken financing system after the policy choices of our last government.
“We are excited to work closely with a development partner on the first 100 of many more affordable keyworker homes for Southwark. We know there is market appetite for this project and the demand for these types of homes will only increase in the coming years. This first site’s location is ideal for our borough’s keyworkers, with easy links to many of our primary frontline services.
“We are delighted that a new community venue will be re-provided for Bermondsey residents alongside our affordable keyworker homes. We know how much of a social anchor the former Beormund Community Centre was and it’s exciting the new venue build upon this legacy to the benefit of current and future residents who move into the key worker homes.”