O2 Centre regeneration loses 240 affordable homes after Mayor cuts targets

Camden Council is set to approve changes to the £1bn O2 Centre regeneration in Golders Green that will reduce the number of affordable homes by 240. The revised scheme, which goes before the Planning Committee on 20 August 2026, cuts the allocation from 570 to 330 units. The project, first approved in 2023, has faced delays due to rising construction costs and new building regulations.

The reduction follows a decision by Mayor Sadiq Khan in 2024 to lower affordable housing targets across London. The O2 Centre scheme’s affordable housing proportion has dropped from 31% to 18%. Camden Council said the changes were necessary to ensure the project remains financially viable while still delivering new homes to meet the borough’s needs.

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O2 Centre O2 Centre redevelopment plans approved by Camden Council

Revised masterplan allows for taller blocks and fewer affordable homes on Finchley Road site.

Residents and councillors criticise cuts

The revised plans have drawn objections from residents and opposition politicians. Cllr Janet Grauberg, a Liberal Democrat councillor, said West Hampstead residents would be “really angry” at the cuts. She added that the Labour administration had already failed to meet its own target of 50% affordable homes for new developments in Camden.

“The only people who benefit will be the developers.”

Cllr Janet Grauberg, Liberal Democrat councillor

A senior council officer, described as a ‘Senior Community Partner’, criticised the reduction of a proposed community space to 71 square metres, comparing it to the size of a meeting room. One resident also complained about the planned gap between construction phases, warning it would leave “a couple of towers in the middle of a car park for so many years”.

Project timeline and next steps

The O2 Centre regeneration is planned in three phases. The first phase will include new residential towers, with one reduced from ten storeys to two. A second tower will gain up to two additional storeys. The final phase, scheduled between 2035 and 2041, will see the demolition of the existing O2 shopping centre, built in 1996.

The scheme will still deliver 1,800 homes, along with a new GP surgery, public open spaces, a linear park and a town square. The Vue cinema, sports facilities and a large supermarket will also be replaced. The council extended the public consultation period after an administrative error, with the final feedback window closing on 15 August 2026.

The Planning Committee’s decision on 20 August 2026 will be followed by a referral to the Mayor of London’s office for final approval. Khan’s reduction of affordable housing targets is currently subject to a High Court challenge by Hackney, Lewisham and Tower Hamlets councils.