A controversial plan to bulldoze a 1980s south London shopping centre for almost 900 new homes has been rejected by the Planning Inspector.
Berkeley Homes had applied to build 867 flats on the site of the Aylesham Centre in Peckham.
But campaigners were furious that just 12 per cent of the homes were due to be “affordable”, a reduction from 35 per cent in the initial proposals.
The push against the development was backed by comedians James Acaster and Nish Kumar, who helped raise money for the fight with a performance at Peckham Levels last year.
Planning Inspector Matthew Shrigley said: "Although the appeal scheme does have some positive design attributes and high order benefits, the elements of harm identified are not outweighed."
He added that even if the 35 per cent affordable housing was due to be delivered, he still would have found that the level of harm "would not be overridden".
Sarah King, Leader of Southwark Council, welcomed the refusal, branding it "a great day for Peckham".
She said: "I'd like to personally thank the community who spoke loud and clearly about their concerns.
"We shared those concerns and strongly argued at the public inquiry that the scheme was poorly designed and our position has been vindicated. We will read the appeal in detail and carefully consider our next steps."
Local campaign group Aylesham Community Action (ACA) fundraised more than £55,000 to help pay for a barrister to represent them at the Planning Inquiry, which began in October 2025.
Siobhan McCarthy, from ACA, said: "The inspector puts it in black and white: this a generational opportunity for Peckham.
"So there now must be real, comprehensive, lasting, grassroots input from the community on any future plan for the Aylesham site."
Berkeley Homes had wanted to knock down the Aylesham Centre to build 867 new homes, of which 50 would have been available at social rent and 27 intermediate.
A new Morrisons store, as well as other retail and leisure units were also planned across 16 tower blocks in total up to 20 storeys high.
Berkeley Homes had originally planed to deliver 35 per cent of the scheme as affordable housing, including 185 social rented units as part of an 877-home development overall.
But the latest plans saw the levels dramatically reduced and a Community Land Trust, which would have provided low cost housing, scrapped.
The developer said it reduced the affordable housing due to uncertainty about Greater London Authority funding, delays to securing planning permission and increased building costs.
A spokesperson for Berkeley Homes previously said: "This is a site that has been earmarked for housing for 11 years now. Two previous developers failed to come up with a workable project.
"We have been working with the council, local residents and businesses for four years and have sought to accommodate everyone's wishes, as far as possible, along the way, while keeping the project viable. After all this time, effort and money, if Berkeley is to build homes, we have no other option but to appeal for non-determination."
