Arada London Submits Plans for 516-Bed Student Housing and 55 Affordable Homes in Peckham

Arada London has submitted a planning application to the London Borough of Southwark for a mixed-use residential development on Blackpool Road in Peckham that would deliver 516 purpose-built student accommodation beds and 55 social rent homes on a 1.4-acre brownfield site.

The proposal, filed Aug. 10, 2026, comprises two separate buildings arranged around landscaped courtyards. The affordable housing block would include ground-floor maisonettes and apartments above, while the student accommodation building would offer a range of communal amenities. Approximately 1,200 square feet of ground-floor commercial and community space is also included in the plans.

Scheme Details and Affordable Housing Provision

All 55 homes in the residential block are proposed at social rent — the deepest affordability tenure available — rather than shared ownership or intermediate products. Arada London states the affordable housing provision is equivalent to 42.2% of the overall scheme, exceeding Southwark's minimum policy requirements. The London Borough of Southwark and the London Plan generally target a minimum of 35% to 50% affordable housing on larger schemes, with a strong preference for social rent and London Affordable Rent tenures.

The affordable homes are designed to include a dedicated children's play area, private outdoor space for every unit, generous living areas and good natural light. The student accommodation building would feature communal lounges, a gym, laundry facilities, dedicated study and social spaces, and a roof terrace.

The plans also include 376 cycle storage spaces and enhanced, pedestrianised public realm. The site sits eight minutes' walk from Rye Lane and has access to Peckham Rye Park and Common. Arada London estimates residents would contribute approximately £9.9 million of spending to the local area annually.

Design, Sustainability and Architect

The scheme has been designed by Morris+Company, a London-based architecture practice with experience across housing, healthcare, schools and neighbourhood masterplans. Arada London is also working with Morris+Company on a separate mixed-use scheme on Jamestown Road and Arlington Road in Camden Town.

Sustainability features include air source heat pumps serving both buildings and a roof area maximised for photovoltaic panels. The development is sited on a brownfield plot, consistent with London Plan policy directing new residential supply to previously developed land.

The Blackpool Road site falls within a wider area allocated for housing and mixed-use redevelopment in Southwark's local plan. Arada London previously secured the site with the stated intention to deliver a mix of affordable and student housing.

PBSA Market Context

The Peckham proposal enters a London student housing market characterised by persistent undersupply. The London Plan's technical work estimates a requirement of at least 3,500 new purpose-built student accommodation bedspaces per year to keep pace with demand. A London-wide needs assessment points to a student accommodation gap of approximately 12,952 bedspaces in 2025, projected to rise to around 26,556 by 2041 across the wider commutable area.

Approximately 19,600 new purpose-built student accommodation beds were delivered across the United Kingdom in 2025, a roughly 20% increase on the prior year but still below the pre-pandemic average of more than 25,000 beds annually. London led delivery with around 4,350 beds added in 2025, with approximately 14,600 beds under construction at year-end, representing roughly 29% of the national pipeline.

Arada London's Broader London Strategy

Arada London is part of UAE-based master-developer Arada, which has stated a pipeline of 17,000 homes in the capital. Elsewhere in Southwark, the firm is planning its first co-living project in London as well as a hotel near Elephant and Castle.

Steve Harrington, Planning Director at Arada London, said the firm had engaged extensively with the local community ahead of submission. "From the outset it has been a priority for us that Blackpool Road feels like a natural part of Peckham," Harrington said. "London faces a pressing need for genuinely affordable, high-quality homes and well-located student accommodation, and Blackpool Road is designed to meet both."

Harrington added that the scheme "reflects policy objectives, addressing the shortfall of housing by making the most of brownfield land, while honouring the character of Peckham and delivering public realm that the whole community can take pride in."

The application is now pending review by the London Borough of Southwark.

Sources

Arada London – Student Accommodation and Affordable Homes, Peckham (Aug. 10, 2026)