Lewisham Council accepted Myer Homes can only afford to build 20 per cent affordable housing as part of its 365-flat and workspace development on Conington Road.

This came in the four-day public inquiry into the development, which has been strongly opposed by residents.

The GLA had directed Lewisham Council to refuse the application on the basis that more than the 20 per cent affordable housing in Myer Homes’ plans could be built.

But during the inquiry it emerged a report on cost estimates had not been sent to both of the council's expert surveyors.

Once analysed, this saw Lewisham increase its build costs estimates by £4.6m.

While this still meant there was a £20m difference between the council and the developer’s viability conclusions, it reduced the margin of surplus on Lewisham’s assessment to fall within an acceptable margin of error.

Lewisham Council decided not to maintain its reason for refusal relating to affordable housing on appeal.

The GLA did not accept the position on cost estimates and maintained its position during the course of the inquiry. 

Planning inspector Paul Jackson will now consider all the evidence made during the inquiry, including from residents, councillors and the Blackheath Society.

Mr Jackson will prepare a recommendation for the Secretary of State who will decide whether the development can go ahead.

This follows after two almost identical applications for the scheme, which includes eight, 14 and 34-storey towers, were submitted by Meyer Homes.

The first was refused last April by Lewisham Council’s strategic development committee for its transport access and capacity, affordable housing levels, and height and density.

But Meyer Homes appealed the refusal and made a second identical application, which was approved by the committee last December by four votes to three.

The Mayor of London then directed Lewisham to reject the scheme after finding the 20 per cent level of affordable housing “wholly unacceptable.”

The GLA also faces a costs application from the developer.

A decision is expected in around six weeks.

A petition against the development has got more than 1200 signatures.

A City Hall spokesperson said: “The GLA attended the Inquiry to support Lewisham’s case on the number of affordable homes, the Deputy Mayor for Planning, Regeneration & Skills having directed refusal of a similar scheme on this site recently. We are aware of the developer’s application for costs against the GLA, made during the closing submissions to the inquiry. We are disappointed that such an application was made and at such a late stage. We are currently reviewing our legal position.”