Demolition of Dalston’s Kingsland Shopping Centre for tower blocks triggers backlash over lack of affordable housing

Key Points:

• Criterion Capital Ltd submitted a planning application to redevelop the eastern third of Dalston’s Kingsland Shopping Centre in Hackney, London.
• The project proposes four residential towers (three up to 14 storeys, one up to 12), with 254 new flats and commercial space.
• Only 81 units are designated “affordable”, falling short of Hackney Council’s 50% affordable housing target.
• Of the 81 affordable homes, 36 will be “intermediate rent” (80% of market rate) and 45 at “London affordable rent” for lower-income households.
• 173 flats will be sold at full market price.
• The developer cites financial non-viability if the full affordable housing requirement is met.
• Residents and groups like Morning Lane People’s Space (MOPS) strongly oppose the plan, calling it “terrible” and “crammed”.
• Concerns raised include lack of affordability, overshadowing of Ridley Road Market, and failure to meet local housing needs.
• Planning application was submitted in January 2025, validated in April, and decision deadline extended to 5 September 2025.
• Project includes 3,000+ sqm commercial space, 4,400+ sqm public open space, and 2,000+ sqm residential amenity space.
• Hackney Council’s 2021 Dalston Plan allows taller buildings at this site but emphasises genuinely affordable housing.
• Mayor of London’s £4bn housing fund (2021–2026) aims to increase affordable housing, but starts dropped 88% since 2023.

Proposals to redevelop part of Dalston’s Kingsland Shopping Centre into four “massive” residential towers have triggered widespread local backlash, amid claims the plan fails to meet vital affordable housing targets. As reported by Josef Steen of The Standard, the applicant, Criterion Capital Ltd, has submitted a controversial planning application to Hackney Council.

What is Criterion Capital planning for Dalston’s Kingsland Shopping Centre?

Criterion Capital Ltd has lodged a proposal to demolish the eastern third of the Kingsland Shopping Centre — currently housing the Matalan store and its car park — to make way for four high-rise buildings. The proposed towers would be between 12 and 14 storeys, housing 254 flats, commercial spaces, and 26 “maker’s units” for small businesses and artists.

The development, located at 64 Kingsland High Street, Hackney, E8 2LX, spans more than 9,000 square metres and is part of a car-free scheme, except for limited disabled parking and commercial vehicle access.

How many affordable homes are planned — and does it meet council policy?

Josef Steen of The Standard highlights that the development will not meet Hackney Council’s affordable housing target, which requires 50% of units in schemes over 10 homes to be affordable. Criterion has proposed just 81 affordable flats out of 254, citing financial viability issues.

According to planning documents:

• 36 flats would be offered at intermediate rent — typically 80% of market rent.
• 45 flats would be at London affordable rent, designated for lower-income families with rents capped by the Greater London Authority (GLA).

This leaves 173 homes to be sold at full market value.

What is the financial argument made by the developer?

Criterion’s financial viability assessment claims that the £153 million project would yield only £3.2 million in profit after costs, which is just 25% of the land’s “minimum benchmark value”. The company argues that this shortfall prevents them from meeting the 50% affordability quota, a stance that has drawn criticism from residents and campaigners.

What are local residents and campaigners saying?

As reported by Josef Steen of The Standard, residents and community groups, including Morning Lane People’s Space (MOPS), have fiercely criticised the proposal. They label it “a terrible development” that fails to address Dalston’s most urgent need — truly affordable, family-sized homes.

Concerns include:

• Excessive density and building height
• Visual dominance over local landmarks like Ridley Road Market
• Inadequate provision of social or council housing
• Lack of meaningful community consultation

Some campaigners have demanded that Hackney Council negotiate more strongly with the developer and enforce compliance with the borough’s affordability policy.

What policy and planning guidelines are relevant?

Hackney Council adopted the Dalston Plan SPD in May 2021, which identified Kingsland Shopping Centre as suitable for high-density mixed-use development. However, the same document stresses the importance of genuinely affordable homes and workspace for locals.

Josef Steen of The Standard reports that Criterion’s planning application, originally submitted in January 2025, was validated in April. The decision deadline has now been extended to 5 September 2025 to allow further public input.

How does the Mayor of London’s housing strategy affect this?

While Mayor Sadiq Khan has committed £4 billion between 2021 and 2026 to support affordable housing development across the capital, a report by Josef Steen of The Standard reveals that new affordable housing starts are down by 88% compared to 2023. Rising construction costs and developer withdrawals have significantly slowed delivery, casting doubt on whether schemes like this one will meaningfully contribute to borough-wide housing goals.

What additional features does the redevelopment include?

Beyond residential units, the scheme proposes:

• Over 3,000 sqm of commercial and maker’s space, with 26 workshops sized between 25–100 sqm.
• A 4,400+ sqm public open space, including a new east–west pedestrian route linking Dalston Lane and Martel Place.
• 2,000+ sqm of shared residential external space, including play areas and community zones.

Public exhibitions and community consultations held in 2024 were meant to shape the project. However, residents argue their feedback has not been meaningfully incorporated.

What happens next?

Hackney Council will review all planning documents, public feedback, and policy implications before issuing a final decision by 5 September 2025. The case raises broader questions about the balance between development, community needs, and housing policy compliance in London.

With mounting public opposition and a failure to meet core affordability criteria, the Dalston Kingsland redevelopment proposal remains contentious, even as the capital’s housing crisis demands bold solutions.