Peckham Rye: Businesses blighted by delayed Station Square regeneration say the area has been ‘left to rot’

Peckham Rye Station is on the brink of a dramatic transformation, set to change the face of the entire area. Yet, what should be a moment of excitement has become a source of frustration for local businesses, with one being forced to close altogether.

Plans to transform Peckham Rye Station Square, first announced in 2011 with a £3–£5 million budget, have faced significant delays.

Despite planning permission being granted in 2016 and the station’s Victorian restoration completed, the square remains largely unchanged eight years later.

The project, which was supposed to finish by autumn 2023, is now about three years behind schedule. Phase one, refurbishing the Blenheim Grove corner building, was completed in August 2024 but still awaits interior fittings for tenants. Phase two, demolishing part of the arcade, remains stalled until businesses are relocated.

But how have these setbacks impacted local businesses?

The delays contributed to one business being forced to close.

Richard Robinson, ex-owner of Coal Rooms, which closed in the summer after eight years operating, said the plans for the station area attracted them in the first place.

Robinson told the News : "When we took it on the grand plans were shown to business owners. I was prepared to accept development but we're not really any further on."

Coal Rooms was 'right bang in the middle of it all' attached to the station building. The company recently went into liquidation and Richard said the delays to the work were part of the reason for the restaurant's closure.

The hoardings (pictured) were taken down last year when the station was restored, but he said they had a knock-on effect on footfall.

"When the hoardings were up, people assumed we were shut," he told us. "Our trade was definitely affected."

'People just assumed we were closed,' says ex-Coal Rooms owner

He added: "The works left us in a state of uncertainty and challenges," claiming they were not told the reason behind the delays.

Robinson also pointed to the delays as a factor in anti-social behaviour in the area: "It's all enclosed and dark at night," he told us, whilst adding: "It's not a great time to be an operator in that area."

Not all businesses have the same opinion. Motown Caffe, based inside the station, is now in its 13th year of serving locals. The owner told us the delay to the square had 'no impact' on them.

Peckham Rye Station Square today awaiting the upgrade. (photo: Isabel Ramírez)

Eileen Conn, founder of Peckham Vision and local activist in regular talks with business owners said: "The Council has done a very poor job by not keeping the businesses, station users and local people informed about the progress of the work.

"It is so inadequate and unsatisfactory and needs to change."

Councillor Helen Dennis, Cabinet Member for New Homes and Sustainable Development, responded to claims they were not informing businesses: “We are in ongoing negotiations with businesses directly affected by the redevelopment – particularly those that will need to relocate to allow the next phase of the scheme to start. Until those negotiations are complete we are not in a position to update the community more broadly on detailed timelines.

"We can confirm that we are currently out to tender for a main contractor for phase 2 and are broadly anticipating starting on site summer 2025”.

https://southwarknews.co.uk/area/peckham/what-is-going-on-with-peckham-rye-station-square/

Peckham is becoming world famous, but 'looks like it has been left to rot' .

Local business owner and resident Dan Deacon, who is based just off Rye Lane, expressed his frustrations about the state of development in Peckham. He acknowledged that delays in projects are common but said that seeing the development on Blenheim Grove completed a while ago only to remain empty, covered in graffiti already, was deeply disheartening.

According to Deacon, Rye Lane already feels neglected, with numerous boarded-up shop fronts. While no one wants the area overrun with chain stores, he emphasised that “some pride and care wouldn’t go amiss.”

Deacon described Peckham as an incredible place and urged the council to do better. He pointed out that the station’s surroundings, the first thing people see upon arriving in Peckham, give a poor impression. “There’s no signage about what is to come,” he said, adding that the area “just looks like it’s been left to rot.”

The Blenheim Grove corner building 'covered' in graffiti. (Google Maps)

He pointed to Peckham’s glowing reputation in the media versus its reality. “What is insane,” he commented, “is that in the mainstream press, everyone bangs on about Peckham being one of the best neighbourhoods in the capital—sometimes Europe or even the world.

"Movies are shot here, but when it comes to civic pride, it seems to be severely lacking.”

Deacon linked his concerns to broader issues with redevelopment in the area, including the delays surrounding the Aylesham Centre project. He said it feels like Peckham is “on a go-slow” compared to other parts of Southwark, such as Elephant and Castle, where projects are moving much faster.

He called for urgent action, stating: “The council need to get a firm handle on the situation and improve things quickly as it really impacts the overall feel for the community and is causing long-term damage.”

Things are going on behind the scenes, insists a local architect.

Benedict O'Looney , the architect behind the Peckham Rye Station restoration said: "Whilst it seems like nothing is happening, there's quite a fair bit going on behind the scenes."

O'Looney has been working on the project since 2009, with the support of Network Rail, the Railway Heritage Trust and Southwark Council.

A 'prelude' to the modernisation of the Grade II-listed station, his work involved restoring the existing Victorian fabric of the station. During the works, he and his team of architects uncovered a buried staircase, an abandoned billiard room, and a stunning facade.

https://southwarknews.co.uk/area/southwark/hidden-gems-of-the-peckham-rye-station-restoration-revealed-in-our-sneak-video-preview-including-an-abandoned-billiard-room-and-secret-staircase/

Mr O'Looney told the News : "Having spent much of the last five years working on the restoration, I couldn't wait for everyone to see it."

The next step, he confirmed, is getting new lighting put in: "It's not lit in there at the moment which is pretty harsh for the people around there," he said.

The council apologised for the delays and said was a 'particularly challenging' project.

Cllr Helen Dennis, Cabinet Member for New Homes and Sustainable Development, said: “We very much share the frustration felt here and want nothing more than for the station square upgrade to progress. It’s long been a council priority that we are doing everything we can to move along.

“Delays are partly due to water ingress issues given the building’s location next to the railway, which have now been resolved.

“There are outstanding negotiations with some businesses affected who had expressed an interest in relocation. We are eager for these to reach a conclusion so that the second phase of building works can begin in summer 2025 as planned.”

"This is a particularly challenging project involving multiple stakeholders, landowners, a listed building, and live rail infrastructure and we apologise it has taken longer than originally anticipated."

Why does the station need refurbishing?

Peckham Rye Station is the busiest interchange in the UK without step-free access, making it tough for people with mobility issues, parents with buggies, and shoppers to get around. The platforms and passageways are also too small for the crowds, leading to packed, uncomfortable conditions during busy times.

Southwark Council approved plans last year for Network Rail to modernise and improve the station. Whilst its original 19th-century features have been restored, the station itself is set for a £40million makeover.