Southwark will pay to fit out a new health centre which a developer had been due to build as part of the final phase of the Elephant Park redevelopment on the site of the former Heygate Estate.
The new health centre will replace two existing GP surgeries and subject to final approvals could start receiving patients in 2031.
The decision was approved during a meeting of Southwark Council’s Cabinet on Monday, 16 March.
Developer Hub Residential had been due to include a health centre within plans for nearly 800 new homes on the final plot of the Elephant Park redevelopment of the Heygate Estate, known as H1, which were approved by Southwark’s planning committee on Tuesday, 17 March.
A council report accompanying the Cabinet decision stated that due to “current viability constraints” it was unlikely that Hub would be able to build the health centre.
The document continued that Hub required a legal commitment from the NHS promising to lease the finished health centre before they could invest in fitting it out.
However the report said that the NHS “cannot make legally binding forward commitments”.
Instead, Southwark will step in to purchase the ‘shell and core’ of the health centre, and will work with the NHS South East London Integrated Care Board (ICB) which manages health services in the area to fit it out in line with NHS standards.
The ICB will provide Southwark with a ‘memorandum of understanding’ setting out their desire to take on the lease once it is done.
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In the event that the NHS does not take on the lease, the council will either use the building for commercial purposes or for private healthcare.
The cost to the council of fitting out the health centre is not included in the publicly available version of the report, however it stated that it could be a “potentially profitable long term investment for the council” because the revenue it will generate from the lease will likely outstrip the cost of fitting out the premises.
The purchase will be funded by money from the Community Infrastructure Levy – a charge imposed by local councils on developers to fund local improvements as a condition of obtaining planning permission.
Councillor Stephanie Cryan, Cabinet Member for Equalities, Democracy and Finance, said: “This is fantastic news for everyone living in Elephant and Castle. The new health centre will give local people better access to doctors, nurses, and a wider range of health and wellbeing services, all in one modern, welcoming building.
“We know the existing GP surgeries are struggling in outdated premises, and residents deserve better. By investing in this new facility, we’re helping to future?proof local healthcare for generations to come.
“It’s more than just a health centre, it’s part of our commitment to build a healthier Southwark as the area continues to grow and thrive.”
The new health centre will include:
Modern GP surgeries with more clinical rooms and better accessibility.
Treatment and minor procedure rooms designed for modern care.
Specialist services such as women’s health, long-term conditions, and mental health support.
Community services, including therapy and counselling rooms.
Flexible space for group consultations, clinics, and outreach programmes.
