Southwark Council’s planning committee questioned a housing association over their purchase of four blocks of flats in Peckham, which were found to be riddled with problems.

Committee chairman Cllr Martin Seaton asked representatives from Wandle Housing Association how they purchased the four blocks on Solomons Passage without knowing the extent of the issues with the  buildings.

Two blocks at 42 and 44 Solomons Passage will be demolished and replaced with one larger building, while the two at 40 and 46 Solomons Passage will be refurbished.

The number of affordable homes satisfy Southwark Council planning regulations, at 35 per cent.

Laura Glasgow from Wandle Housing Association said they could not confirm how they acquired the buildings, which constitute 85 homes.

Residents have been rehoused, but have a right to return at the same rent levels.

“It is true to say that I don’t believe there is anybody now in the development team that was responsible for the purchase and/or development of this site at the time. What I can say is that the scheme was provided with NHBC warranty and that is perfectly usual and any purchaser would expect that that would be sufficient,” she told the committee.

Cllr Seaton said the committee would be pushing to have the highest number of affordable housing in the blocks, despite the financial loss the association have suffered from the faults.

“The desire is that our policy be upheld but if we gain more [affordable housing] because it is viable, [then] we should achieve that.

“It seems almost incredulous for a multi-million pound transaction to take place with one that involves a receiver and one that involves an industry professional to have gone forward without any defects being known,” he said.

Ms Glasgow said the housing association was in the process of litigation.

The committee also discussed the increased mass of the building, following concerns this would impact light and the character of the area, but the changes were considered acceptable.

The new building will be constructed with brick and significant elements of metal cladding.