The Greenwich Peninsula scheme is now under review according to developer London Square

Plans to build more than 1,000 homes on an IKEA car park and the site of a former B&Q store have been withdrawn because of the “spiralling” costs of construction.

ikea greewnich

The car park site at Ikea, in Bugsby’s Way, Greenwich 

Source: Google

The developer behind the scheme, London Square, today confirmed it had withdrawn its planning application for Bugsby’s Way in Greenwich Peninsula, South London.

“We have decided to review our current planning application for Bugsby’s Way, Greenwich,” a spokesperson for London Square said in a statement. 

“We are assessing the viability of the development, in the light of spiralling costs in construction and building materials. We may then look at submitting a revised application in the future.” 

The London-focused developer last year reported it had seen its profit double to £22m.

Councillor for Greenwich Peninsula & North Charlton, David Gardner, wrote on Twitter: “Delighted that London Square has now withdrawn its Peninsula Gardens application for B&Q and [IKEA] car park.

He added: “[I] hope they will come back with an enhanced lower-rise scheme with less parking working with local residents.”

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The Bugsby Way plans were first consulted on in 2021, comprising a proposed 1,290 new homes with 35% affordable housing, including 324 homes at London Affordable Rent and 129 for Shared Ownership .

The 5.3 hectares of “hard tarmac” set for development included part of the neighbouring IKEA carpark and the demolition of a former B&Q store building. The proposed building would have ranged from 16 to 20 storeys.

In April, London Square was given the green light for a 253-home development in Wandsworth.