Merton Council Approves 554-Home Gasworks Redevelopment

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  Published in House and Home on Tuesday, March 17th 2026 at 14:11 GMT by London Evening Standard
      Locale: UNITED KINGDOM

Merton Gasworks Redevelopment: Council Greenlights 554-Home Project Despite Resident Concerns

Merton Council yesterday, March 17th, 2026, approved a contentious plan to construct 554 homes on the site of the former Merton gasworks. The decision, made after a lengthy debate, signifies a major step in the regeneration of the industrial land but has sparked considerable opposition from local residents.

The development, spearheaded by property developer Pegasus Living, is a mixed-use scheme comprising 365 build-to-rent apartments and 189 homes intended for private sale. Crucially, 25% of the total housing units will be designated as affordable, a provision that council officers highlighted as a positive contribution towards addressing Merton's housing needs. While the percentage adheres to council policy, critics argue it doesn't go far enough to meet the growing demand for genuinely affordable housing in the borough.

Council officers, recommending approval, maintained that the benefits of the project - including the provision of much-needed housing and economic stimulus - outweigh potential negative impacts. The former gasworks site has been derelict for years, considered an eyesore and a potential source of environmental contamination. Redevelopment offers the opportunity to remediate the land and replace it with a modern, sustainable residential community. Pegasus Living's proposal includes significant landscaping efforts and the creation of a new pedestrian access point to the nearby Merton Common, promising to enhance the green space available to residents.

However, the path to approval was far from smooth. Over 200 residents formally objected to the plans, voicing serious concerns about the project's potential consequences for the local area. Key issues raised included a predicted increase in traffic congestion, elevated noise levels during and after construction, air pollution from increased vehicle emissions, and a strain on existing local services like schools, healthcare facilities, and public transportation. These concerns are particularly acute given the already densely populated nature of parts of Merton.

Councillor Mike Collyer, one of the few committee members who voted against the proposals, articulated the frustrations of many objectors. "While I acknowledge the urgent need for new housing within the borough, I firmly believe this particular proposal is ill-suited for Merton," he stated. "The sheer scale and density of the development are excessive and will inevitably place an unacceptable burden on our already stretched infrastructure. The impact assessment doesn't adequately address the concerns regarding traffic and the capacity of local schools to accommodate an influx of new students."

Pegasus Living has countered these criticisms by emphasizing the economic benefits the project will bring. The company projects the creation of approximately 100 jobs during the construction phase and a sustained boost to the local economy through increased spending by new residents. They also highlight the GBP1.7 million contribution towards local transport improvements, intended to mitigate the anticipated increase in traffic. However, resident groups argue that this funding is insufficient to address the long-term implications of the development.

The council's approval is conditional upon several key requirements. Alongside the transport funding, Pegasus Living is obligated to implement a comprehensive travel plan aimed at encouraging sustainable modes of transport, such as cycling and public transport, to minimize reliance on private vehicles. The company is also required to adopt measures designed to mitigate the impact on air quality, potentially including the use of low-emission construction equipment and the incorporation of green infrastructure within the development.

The approval of the Merton gasworks redevelopment is the latest in a series of large-scale housing projects approved by the council in recent years. This raises questions about the overall strategy for balancing housing needs with the preservation of local character and the capacity of existing infrastructure. Critics argue that Merton is becoming overdeveloped, sacrificing quality of life for the sake of quantity. Further monitoring and independent assessments of the impact of this and other developments will be crucial to ensure that Merton remains a desirable place to live for all its residents.

The development's next phase will involve detailed design work and the submission of further applications for specific aspects of the project. The construction is expected to commence in late 2026, with the first residents anticipated to move in by 2028.