Affected by the Ledbury Estate CPO? Here’s What to Do Next

The regeneration of the Ledbury Estate in Southwark is now moving into a critical stage. On 20 May 2025, the London Borough of Southwark formally made the The London Borough of Southwark (Ledbury Estate Phase 2) Compulsory Purchase Order 2025

This blog sets out the key facts about the CPO, what it means for leaseholders and freeholders on the estate, and crucially how Olden Property can support those impacted.

What is happening?

The CPO covers land forming part of the Ledbury Estate bounded by Old Kent Road and Commercial Way, including three residential towers (Peterchurch House, Sarnsfield House and Skenfrith House) and associated amenity land and a section of unregistered land.

The purpose: to facilitate demolition of the existing towers and their replacement with four new residential buildings with amenity, landscaping, play space and parking.

Why has the CPO been used?

The regeneration scheme has been under consultation for several years (see the “Final Option” offer document prepared by Southwark) and the Council clearly states that the compulsory acquisition power is required to ensure timely delivery of the redevelopment.

The use of the CPO route allows the Council to acquire the necessary land and interests when voluntary agreement cannot be reached — safeguarding the scheme from stand-still or unknown encumbrances.

Implications for Leaseholders and Freeholders

If you hold a lease, freehold or other interest within the defined CPO area, here are the practical implications:

· You may receive a Notice of Making of the Order and, once confirmed, a Notice to Treat and/or Notice of Entry.

· Your property will be valued on the basis required by the relevant compensation legislation (for example the Acquisition of Land Act 1981).

· Even though this is a compulsory acquisition, you remain entitled to negotiate and/or challenge the valuation.

· The Council’s documents suggest that existing leaseholders will be offered new replacement homes as part of the redevelopment – including options for shared equity, buy-back or return to the new homes.

· It is especially important to ensure that all your professional fees (legal, valuation, surveying) are properly claimed, and that you understand how your right to return, or participation in the replacement scheme, is valued.

Key Considerations for Valuation

· Valuation basis: The statutory framework expects you to be “no worse off” than if the acquisition had not taken place. That means the market value is calculated ignoring any reduction in value caused solely by the scheme itself

· Leasehold vs Freehold: Leaseholders need to assess the value of their existing interest and compare that with the value of any replacement or return option being offered. Freeholders must consider the redevelopment potential and whether their interest triggers additional compensation rights.

· Timing & certainty: Because the CPO has now been made, this introduces a timeline and some certainty, which is beneficial in many respects. Delay or uncertainty often erodes negotiating leverage.

· Replacement home offer: If you are offered a new home as part of the scheme, ask how that offer is valued, what the rights of return are, whether you have choice over specification, and how the exchange/relocation cost is covered.

· Professional advice: This is a technically specialist area combining valuation, property law and compensation practice. Engaging advisors early helps position you strongly.

How Olden Property Can Help

At Olden Property we bring deep expertise in valuation and advisory services in the regeneration / CPO environment and we act for the claimant side, not for the acquiring authority.

Here’s how we support you:

· We conduct independent RICS-compliant valuations of your interest (leasehold or freehold) using real-world comparables, specialist methodology and tailored to your specific rights.

· We review the Council’s replacement home offer (if applicable) and advise on how it should be valued and compared with your existing interest.

· We assist in negotiation with the acquiring authority: preparing submissions, responding to their valuations, negotiating settlement terms and assessing the reasonableness of offers.

· We help you identify and claim all compensation heads: open market value, home-loss payments, disturbance costs, recovery of professional fees, rights of return or buy-back offers.

· We provide ongoing support from initial consultation through to settlement — ensuring transparency, timely advice and that no value is left on the table.

If you or a client are within the Ledbury Estate Phase 2 area, or facing a similar regeneration-led CPO scheme elsewhere in London, Kent, Sussex or the South East, we are ready to help.

Conclusion

The Ledbury Estate Phase 2 CPO marks a significant intervention by Southwark Council in delivering large-scale regeneration along the Old Kent Road corridor. For leaseholders, freeholders and investors within the CPO boundary, this is a defining moment: one requiring clear understanding of rights, strategic valuation insight and early professional engagement.

At Olden Property we specialise in precisely this intersection of regeneration, valuation and claimant advice — and we’d be pleased to assist you navigate the process with clarity and confidence.