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Developers behind plans to demolish the “eyesore” Kensington Forum hotel and replace it with an even bigger building have offered to make all the housing in the scheme affordable.

The surprise move was revealed today in a revised planning application for a vast five-star hotel with serviced apartments and conference centre complex in Cromwell Road.

Property company Rockwell said all 62 homes in a block next to the new hotel would be available to lower income families on council housing waiting lists who qualify for heavily subsidised “London Affordable Rent”.

It is believed to be the first time that 100 per cent of homes in a major private development in the capital have been allocated for social rent. They would have a value of £90 million if sold on the open market.

The offer came after Sadiq Khan called in the planning application for a second time, taking the decision out of the hands of Kensington & Chelsea council, which has rejected the scheme.

The Mayor has said that increasing the supply of “genuinely affordable” homes for social rent is his top housing priority. Kensington & Chelsea borough has 3,330 households on its waiting list.

The original planning application, lodged in June last year, included 46 homes, of which 20 were designated affordable but only 11 of these were for social rent. Almost 800 residents objected to the plans, which one opponent said would replace “one out of place monstrosity” with a bigger one.

The current 28-storey hotel, a Holiday Inn, was built in the early Seventies to a design by brutalist architect Richard Seifert and has 906 rooms.

Rockwell and its partner, the Kensington Forum’s owner Queensgate Investments, want to knock it down and build a “world class” hotel with 749 rooms, 340 serviced apartments, spa, bars, restaurants and conference facilities at a cost of £300 million.

They have also promised to reinstate a public garden square that was lost when the hotel was built. The complex would be spread over three buildings including two towers of 22 storeys and 30 storeys, which would be the tallest building in the borough. The housing will be in a building that is being increased in height from seven to nine floors in the revised plan.

Three weeks of consultation on the scheme begin today. The Mayor is likely to make a decision by the summer.