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DD2788 South London and Maudsley masterplanning and capacity studies

Key information

Decision type: Director

Directorate: Housing and Land

Reference code: DD2788

Date signed:

Date published:

Decision by: Tim Steer, Executive Director, Housing and Land

Executive summary

The Greater London Authority (GLA) is working with the South London and Maudsley Trust (SLaM) to review the masterplanning and capacity for two significant hospital sites in south London, to support releasing the land for housing. Previously secured funding from Homes England is no longer available to complete the work, and the partners remain committed to the project. The GLA therefore proposes to make up the shortfall in funding to enable the commission to be completed and secure the comprehensive redevelopment of the two sites.

Decision

That the Executive Director of Housing and Land approves spending:

•    up to £200,000 towards the costs of masterplanning and capacity studies for Maudsley and Bethlem Hospitals, owned by the South London and Maudsley Trust, to be competitively procured through the Architecture + Urbanism framework 

•    up to £20,000 towards external project management costs to support the management of the commissioned consultants.
 

Part 1: Non-confidential facts and advice

1.1.    The Public Land team contributes to the Building More Homes delivery plan (Mayoral Decision (MD) 3378). This identifies how the GLA will work across the housing sector and in close collaboration with London local authorities and central government to understand and overcome the barriers to housing delivery across all tenures. The Making Best Use of Land delivery plan (MD3434) identifies how the GLA will work with partners to ensure land and new development contributes fully to tackling London’s housing crisis and supporting economic growth through support public landowners in London to release land for housing. In seeking to address these actions, the team works with a range of public sector partners to identify opportunities for land release and/or estate optimisation and then provides support from strategy development to disposal and for the provision of housing, including affordable housing.

1.2.    Currently the team is working with the South London and Maudsley NHS Trust (SLaM) to review the Trust’s Maudsley and Bethlem Hospital sites. SLaM is seeking to appoint a lead multi-disciplinary consultant, supported by specialist consultants where required, to develop the following:

•    A strategic, outline masterplan for the redevelopment of the Maudsley Hospital that meets clinical, housing and commercial-space needs. This should explore the art of the possible, setting the parameters and concepts for more detailed design phases and a full masterplan.

•    A feasibility study for the housing-led redevelopment of the surplus land on the Bethlem Hospital site. The study should identify surplus land; and develop several sufficiently detailed options that explore providing housing on the identified plots. 

1.3.    MD3424 approved the receipt of grant funding from Homes England with respect to the masterplanning and capacity work on the two sites. However, the timing of the grant funding was limited to the end of the 2025-26 financial year. Delays, and the project’s complexity, have made it impossible to procure consultants, and complete the anticipated scope of work, within such a reduced period. As a result, the previously secured funding from Homes England is no longer available to complete the work. However, the partners remain committed to the project; and so the GLA proposes to make up the shortfall in funding. This will enable the commission to be completed; and will secure the comprehensive redevelopment of the two sites, which will support the local communities. The funding will total £220,000. This reflects the costs of the masterplanning, at £200,000; and £20,000 towards the cost of a project manager to manage the consultant team for the duration of the work.
 

2.1.    The work looks at intensifying the use of the Maudsley and Bethlem sites, so that they can meet future clinical demand while serving complementary residential and commercial purposes. SLaM would like to establish a framework for the long-term redevelopment of the sites. This framework would consider the sites holistically; and set out a compelling vision to further enable their use. 

2.2.    The procurement for the masterplanning and capacity work has progressed through the Architecture + Urbanism framework using Lot 8 Housing and Mixed Use; and in partnership with the GLA. This competitive procurement will secure the services of a multidisciplinary team to review the Maudsley and Bethlem sites; and provide a market-facing approach to the redevelopment.

Maudsley Hospital

2.3.    The Maudsley Hospital is a six-hectare site in the London Borough of Southwark. SLaM operates a wide range of mental health services from the site, which serves a wide geographic area. It is owned predominantly by SLaM and the associated Maudsley Charity, with a small number of other leaseholders on site. The site area (bounded by Denmark Hill, De Crespigny Park, Windsor Walk and Grove Lane) is all within this ownership, except for the north-east corner. This is a primary school owned by the London Borough of Southwark. 

2.4.    The site comprises clinical buildings of various typologies, but they are mainly medium-to-low-rise. Dotted around the site’s perimeter are terraced street properties (owned by the Maudsley Charity).

2.5.    The site has a rich history, and contains various heritage assets – including several Grade 2-listed buildings and structures. The site is in a conservation area; neighbouring the site to the north and east are residential terraces (mostly two or three storeys high). Across the road to the west is the King’s College Hospital site (operated by a separate NHS trust), which contains several taller buildings. 

Bethlem Hospital

2.6.    In an area of historically low levels of housing delivery, this project would set a positive precedent for suburban intensification. It would also contribute to SLaM’s strategic goals around workforce retention, and community integration of patients.

2.7.    The scope of work included within the £200,000 masterplanning costs is:

•    analysing the site to identify suitable surplus-land parcels, at different levels of intervention (e.g., maintaining current clinical footprint; densifying part of the clinical footprint; densifying the whole site)
•    technical feasibility of housing delivery (infrastructure, access, environmental constraints) and assessing housing capacity for each level of intervention
•    appraising options for housing types – including key-worker accommodation and other tenures that support the wider health and social care system
•    aligning with local planning policy and GLA housing priorities.

2.8.    The two sites are being progressed at different rates, reflecting their readiness for disposal/development. Therefore, the briefs to the consultants have been amended to reflect this; and to ensure that the capacity studies are appropriate and based on current information.

2.9.    The release of land will not only support the clinical reorganisation; but also enable space to be developed for housing, with the potential for some staff accommodation. 

2.10.    Recognising the importance of the masterplanning and capacity studies being delivered according to the agree timescale, the GLA and SLaM have agreed to appoint a project manager to manage the consultant team, at a total of £20,000.  This will ensure the project programme is achieved.
 

3.1.    Under section 149 of the Equality Act 2010, the Mayor and the GLA are subject to a public-sector equality duty and must have due regard to the need to:

•    eliminate unlawful discrimination, harassment and victimisation and any other conduct that is prohibited by or under the Equality Act 2010
•    advance equality of opportunity between people who share a relevant protected characteristic and those who do not
•    foster good relations between people who share a relevant protected characteristic and those who do not.

3.2.    Protected characteristics under section 149 of the Equality Act are age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status. The duty involves having appropriate regard to these matters as they apply in the circumstances, including having regard to the need to: remove or minimise any disadvantage suffered by those who share or are connected to a protected characteristic; take steps to meet the different needs of such people; and encourage them to participate in public life or in any other activity where their participation is disproportionately low.

3.3.    Providing health facilities and additional housing in the boroughs of Lambeth and Bromley will support the ambitions of the Mayor’s Inclusive London Strategy, by creating a great place to live; and a safe, healthy and enjoyable city. Creating new homes will support people to move into suitable accommodation; and address some of the housing need. Increasing the supply of affordable homes will benefit those who most struggle to cover the costs of housing, including young people; households on low and medium incomes; and people from Black and Minority Ethnic groups.
 

4.1.    Key risks and issues

Risk description

Risk impact

Risk rating

(likelihood x impact)

Mitigations

Risk rating after mitigation

(likelihood x impact)

Work costs increase

Partners may have insufficient funds to continue.

 

3x3

The project budget was set with the aim to secure grant funding. It has therefore been subject to review, and set at a level to ensure the delivery quality can meet partners’ ambitions. The procurement process set a ceiling budget; therefore, there is currently no expectation that the budget will need to increase to complete the commission.

2x3

Work is not concluded according to the programme schedule

 

Programme delays may increase costs, through additional work and a knock-on delay to the objectives being realised.

3x3

Employing a project manager, to administer the commission, will maintain momentum on the programme. The project manager has experience of working with SLaM, and associated partners, to deliver projects; and therefore is well placed to support this work. They will also be aware of the wider governance and decision-making within SLaM; and will help ensure the commission is successfully integrated.

2x3

SLaM does not use the masterplanning results

 

In this case, public resources will have been wasted. It will become less likely that the project outputs will be achieved through the release of land for housing.

3x3

The GLA has worked closely with SLaM to design the brief, and ensure that the project fits the strategic objectives of both organisations. The GLA will continue to work alongside the NHS Trust to ensure the masterplanning and capacity studies are incorporated into decision-making and land release.

2x3

The masterplanning finds no available land to release for housing

In this case, the project objectives of the project will not be realised; and no additional housing will be secured for London.

3x4

Based on the scope of the land included in the brief, there is likely to be land available to release for housing. This will be kept under review through the masterplanning process, to support partners’ shared objectives.

2x4

Links to Mayoral strategies and priorities

4.2.    This work is linked to several Mayoral strategies and priorities, as shown in the table below: 

Strategy/programme

Strategic fit

Building More Homes programme (MD3378)

  • Core London-level outcome: Londoners live in homes they can afford.
  • GLA’s contribution to addressing structural barriers to increasing housing delivery: work to enable more homes of all tenures.

Making Best Use of Land programme (MD3434)

  • Core London-level outcomes:
  • Londoners live in neighbourhoods that are well planned and designed
  • public land is released to support the delivery of homes in London.
  • GLA’s contribution to addressing structural barriers to increasing housing delivery:
  • maximise early delivery within the existing land use policy
  • enable a step-change in delivery.

London Housing Strategy

  • Identifying and bringing forward more land for housing, including supporting the release of surplus public land.
  • Ensuring homes are genuinely affordable.

London Plan

  • Ensuring new housing capacity is brought forward in the most sustainable locations and at optimum densities.
  • Ensuring the social infrastructure needs of London’s diverse communities are met.

Conflicts of interest

4.3.    There are no identified conflicts of interest from any officer involved in the drafting or clearance of this decision form.

5.1.    This Decision requests approval to spend:

•    up to £200,000, put towards the costs of masterplanning and capacity studies for Maudsley and Bethlem Hospitals owned by SLaM, to be competitively procured through the Architecture + Urbanism framework 

•    up to £20,000, put towards external project management costs to support the management of the commissioned consultants.

5.2.    The funding will be from the Public Land, Homes for Londoners Collaboration 2026-27 revenue budget. The spend will occur in financial year 2026-27; and is included in the draft 2026-27 budget, to be approved at the end of March 2026.
 

6.1.    Section 30 of the Greater London Authority Act 1999 (as amended) (GLA Act) gives the Mayor a general power to do anything that he considers will further one or more of the principal purposes of the GLA as set out in section 30(2) which are:

•    promoting economic development and wealth creation in Greater London
•    promoting social development in Greater London
•    promoting the improvement of the environment in Greater London.

6.2.    In formulating the proposals in respect of which a decision is sought, officers confirm they have complied with the GLA’s related statutory duties to:

•    pay due regard to the principle that there should be equality of opportunity for all people
•    consider how the proposals will: 

o    promote the improvement of health of persons in Greater London
o    promote the reduction of health inequalities between persons living in Greater London
o    contribute towards the achievement of sustainable development in the UK
o    contribute towards the mitigation of or adaptation to climate change in the UK

•    consult with appropriate bodies.

6.3.    The contents of this report indicate that the Director of Housing and Land has the power to proceed as recommended in this paper.
 

7.1.    The work will be delivered according to the following schedule:

Activity

Timeline

Procurement of contract

March 2026

Announcement

March 2026

Delivery start date

March 2026

Delivery end date

September 2026

Project closure

November 2026

Signed decision document

DD2788 SLaM masterplanning and capacity_SIGNED

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