Council to use special powers to take over O2 Masterplan site

Camden Council is to take ownership of land destined for one of the borough’s most “significant” development projects, sparking concern from the opposition.

On Wednesday (5 June) the Labour-run cabinet agreed the local authority should use its special legal powers to temporarily become landholder of the O2 Masterplan site in West Hampstead.

The major redevelopment, approved in 2023, includes the construction of up to 1,800 new homes and a community centre, cinema, gym, and a “tree-lined” park.

Cllr Adam Harrison, cabinet member for planning, said there was a “strong and compelling public interest case” behind the takeover.

The council is to deploy section 203 powers, which prevent third-parties affected by the proposals from exercising their own rights to halt construction and delay the project.

This refers to car showrooms operating on the land, who currently have access rights and ‘rights to light’ and will now lose their power to take legal action against the development.

Instead, they would receive compensation for the impact on their entitlements.

The cost of the local authority taking formal ownership would be covered by developer Landsec.

However, leader of the opposition, Cllr Tom Simon (Lib Dem), said that the council should hold off, arguing there was “almost nothing to go on” in terms of detail.

“The report doesn’t include the value of the land, how the council would pay for it, the risks of owning the site for longer, or the process of compensation for third parties,” he said.

“A decision of this nature should be made by elected representatives with the full command of facts at their disposal – not made by officers down the road who are not subject to proper scrutiny.”

Cllr Harrison said it was important not to slow the pace of the development, while one of the council’s planning officers added that the purchase would only be “nominal” since Landsec had committed to paying back the cost of the transfer.

Cabinet member for children and families, Cllr Marcus Boyland, urged his colleagues not to “kick the can down the road” and highlighted the “desperate need of struggling schools” faced with falling pupil numbers and consequent less government funding.

“We need more families in the borough,” he said.

Meanwhile, council leader Richard Olszewski criticised the opposition leader for blocking the provision of new homes, “just as the Lib Dems did at Liddell Road”.

In 2015, Camden approved the redevelopment of the light industrial estate at Liddell Road, including four council housing units and a new community centre.

Camden has set the condition that the O2 Masterplan redevelopment be “car-free,” drawing the ire of some residents over “discrimination” against working-class families.

The Masterplan will also contribute £10m towards revamping West Hampstead tube station, including adding step-free access.

Councillors said the total number of houses built at either social or affordable rent would comprise 60 per cent of the new homes, with the majority (35 per cent) falling in the latter category.

While social housing is usually around 50 per cent of market rates, affordable homes typically range between 50 and 80 per cent.