LEWISHAM’S flagship £250m development faces yet another delay, it has been announced.

Companies behind the troubled Lewisham Gateway project, given outline planning permission in 2007, now have until 2013 to finalise detailed planning approval and begin work on site after agreement was reached with Lewisham Council.

Construction had been due to begin back in 2008, but the need for private investment coupled with the dire economic situation has seen it beset by delays.

The development, which has been criticised as turning Lewisham into another Croydon, would see the roundabout opposite Lewisham rail station removed and replacing with high-rise buildings containing 800 homes, shops and leisure facilities.

News Shopper: Campaigners protested outside the council offices Helen Mercer who led a campaign against the development said: “We predicted in 2007 that the emerging financial climate rendered the Gateway project unviable for property developers. We were not heeded by the Lewisham planning committee.

“Since then a fine Edwardian parade, a pub and innumerable small shops and businesses have been needlessly demolished.

"The plans for Lewisham town centre will bring overdevelopment, overcrowding – large retail spaces and homes are being packed in but where is the additional infrastructure?

“Now is the moment for the council to accept they were wrong and look again at the alternative plans put forward by the objectors four years ago.”

Last year, Lewisham Council’s head of planning John Miller admitted the scheme, being built by Muse Developments and Taylor Wimpey, was not financially viable at that time.

News Shopper: An artist's impression of the Gateway

But Taylor Wimpey regional managing director Ingrid Skinner has welcomed the new agreement, saying: “We are delighted to remain part of this major project and look forward to working with our public sector partners to make the scheme a reality.”

Lewisham’s deputy mayor Alan Smith said: “This is an extremely significant and exciting step forward.

“The Lewisham Gateway Development lies at the heart of all our regeneration plans for the town centre many of which are already well underway.”

The developers claim they are still aiming to start work next year if possible.