Plans for a large housing development on the Sainsbury’s site at New Cross Gate have been cancelled by the developers, citing the uncertainty around the Bakerloo line extension.

The development was controversial as it aimed to build on the Sainsbury’s site, which had also been eyed up by London Underground as the main construction site for the New Cross Gate station on the extension.

TfL would then have been likely to have developed the oversite housing itself afterwards. Sainsbury’s plans to build its own towers put the location of the new tube station in doubt. Ordinarily, TfL could force a compulsory purchase order on the site, but not until the Bakerloo line consultation works are completed and the Transport Works order issued.

Despite that, and probably worried about years of legal fights if they pushed ahead, the developers have now decided not to push ahead with the application.

Mount Anvil have advised the Council on behalf of the applicant team that “Due to the increasing uncertainty around the Bakerloo Line Extension project, which has blighted the site, we have agreed not to pursue the application any further.”

The joint venture was between A2Dominion, Mount Anvil and Sainsburys.

Lewisham mayor Damien Egan said: “We welcome Sainsbury’s withdrawal of its planning application at this time, so we can now all focus on bringing the Bakerloo Line to Lewisham. The site is TfL’s preferred construction option for delivering the Bakerloo Line extension, as well as the location of a new London Underground station at New Cross Gate.”