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Shopping arcade outside Peckham Rye Station is finally set to come down

However the full upgrade of the station including lifts is still some way off, with Southwark stating the plans will cost '£45 million', which it is pushing the Department of Transport to release.

Issy Clarke by Issy Clarke
23rd March 2026
in community, Featured, News, Peckham
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The shopping arcade outside Peckham Rye Station is finally being demolished to make way for a public square, ten years after planning permission for a £27 million scheme was granted.

Work to create a public square outside the station entrance is finally underway and will begin with the demolition of the 1930s arcade, with the entire project expected to be finished by next summer.

The square will feature ‘lush raised planters, new seating, upgraded lighting and CCTV’.

There will be space for market stalls and the railway arches will be revealed once the arcade has come down, which could be let out to traders and entrepreneurs.

Cllr Helen Dennis with contractors outside Peckham Rye Station. Credit – Southwark Council

However the upgrade of the station including lifts is still some way off, with Southwark stating the full plans will cost ‘£45 million’, which it is pushing the Department of Transport to release.

It comes after a Network Rail spokesperson told a public meeting in Peckham last week that lifts alone at the station would cost ‘at least £20 million’ to install.

The station had been due to receive an accessibility upgrade but the project was shelved by Network Rail on cost grounds last summer.

In the meantime, £5 million has been secured from the government and Southwark Council to fund interim improvements such as extra ticket gates and entrances to the ticket hall to ease overcrowding concerns.

Planning permission for the public square renewal – separate from the investments in the station itself – was granted more than a decade ago by the Mayor of London in 2016.

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Lifts at Peckham Rye Station will cost ‘at least £20 million’ to install

In addition to demolishing the arcade and paving a new square, which will offer views of the frontage of the Grade II-listed Victorian station from Rye Lane for the first time in generations, the scheme has involved the refurbishment of the building at the corner of Blenheim Grove.

It also involved the creation of Peckham Palms – the UK’s first dedicated Afro hair and beauty hub –  to provide relocation space for businesses impacted by the construction.

We heard from Network Rail at the public meeting that the Blenheim Grove building is going to be let out to Asda and a nursery.

The demolition of the arcade has been subject to repeated delays over the years, first due to delays in relocating businesses, then issues with leakage.

CGI showing what completed Station Square will look like. Credit – Southwark Council

Last year the council appointed a new contractor, BAM, to carry out building work and we were told work would start in the summer of 2025.

While the works are underway the station will remain open but you won’t be able to access it through the centre of the square beneath the arcade.

Passengers will be able to enter and exit the station via Station Way and Holy/Blenheim Grove.

‘Disabled people are forced to slide down the stairs on their bottom’: How Peckham Rye Station is the busiest interchange in the country with no step-free access

Cllr Helen Dennis, Cabinet Member for New Homes and Sustainable Development said: “I am over the moon that work is starting on the much-anticipated Peckham Rye Station Squareproject. BAM Nuttall are now pressing on with work to transform the station entrance, opening up a view of the Victorian Grade II-listed station and creating a vibrant new public space. 

“This council-led project will be complemented by Network Rail’s investment in the station itself and we are continuing to make the case to government for the full amount required to make Peckham Rye station accessible for all.”

Richard Prime, Managing Director for Transport, BAM UK & Ireland, said:  “The Peckham Rye Station Square renovation will be fantastic for the local community and commuters alike. Working with our partners, we’re reinstating the original forecourt, removing the 1930s arcade and refurbishing the arches to enhance the Grade II listed station and support local businesses. This is no mean feat and we’re proud to bring our expertise to this ambitious project.” 

Hidden gems of the Peckham Rye Station restoration revealed in our sneak video preview – including an abandoned billiard room and secret staircase

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