Lewisham Council’s planning committee has approved a New Cross development which has no affordable housing.

The three to seven-storey development includes 25 apartments, three work spaces and the refurbishment of six railway arches at White Post Street.

Developers will contribute £179,881 to the council through the community infrastructure levy – which goes towards supporting infrastructure and services around the development – and other planning obligations.

But developers will not have to contribute towards affordable housing until they make around 20 per cent profit on the scheme, councillors heard.

This comes after the developers claimed they would not be able to make a profit on the scheme if they were to provide affordable housing, which was confirmed by a council-commissioned report.

The report concluded “the scheme would not be able to support on-site affordable housing, but that the proposal would generate a surplus of £240,239 over and beyond an identified profit level.”

The council would then get this money through a Section 106 agreement – money the council gets from developers in order to grant planning permission.

This money has to be spent on specific projects, like housing, and cannot be added to the council’s general budget.

Lewisham Council would review the developers’ income at an early stage and when about three quarters of the homes are sold or rented, and be able to set an affordable housing contribution, according to council documents.

A Lewisham Council planning officer told the committee the development makes “optimal use” of the site.

But councillors were concerned the development would not be contributing to the housing crisis.

Cllr Sakina Sheikh said it was “worrying” that planning applications with no affordable housing were coming to committee.

Cllr Stephen Penfold said: “I feel we would almost be not doing our duty if we say we will just pass this, because we are desperate for affordable housing.”

Cllr Penfold along with Cllr Aisling Gallagher and Cllr Sheikh abstained from voting.