The founder of Mathews Yard has branded a developer's reasoning for not including more affordable housing in plans to demolish the arts hub as "absolute nonsense."

For months now, Regent Land and Developments have pushed for its plans to turn the hub into a block of flats green-lit.

Last month the 55-home plan made it all the way to Mayor of London Sadiq Khan's office, only to be shot down due largely to a lack of affordable (34 per cent).

But in the latest twist to the saga on Surrey Street, a planning officer recommended the most recent plans be approved, despite featuring even less affordable homes.

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"The development would provide 25 per cent affordable housing by habitable room, which although is below the policy requirement, is the maximum possible due to viability considerations," the application read.

But this doesn't worry Matthews Yard found Saif Bonar, who says this won't be the art hub's death knock.

"Even if the committee approves proposals on Thursday, the matter will still need to be referred back to the Greater London Authority for the mayor of London to make a final decision as the planning department at the GLA had flagged up some concerns, particularly around the lack of affordable housing on the site," he said.

"Given other developments have been approved in recent weeks which are in the immediate vicinity and have been able to put forward plans for 100 per cent affordable housing, I personally believe the viability argument is absolute nonsense regardless of its 'independently verified' status."

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The Yard has been hard at work in recent months trying to find another place to call home, if and when its current building gets demolished.

While work has progressed in this department, Mr Bonar believes that a contribution towards relocation should be made by the developer so there is no loss of community provision while redevelopment takes place.

"Regardless of all that, before the election we were made firm promises by the leader of the council and the incoming ward councillors that they would work with Matthews Yard to preserve it in the heart of Croydon for many years to come," he said.

"We have been making some progress in building positive working relationships with our councillors, the leader of the council and a number of senior officers at Croydon Council, which means, whatever happens, we are feeling positive that Matthews Yard will be able to find a suitable new home and receive the support we would need to relocate."

A decision on the application will be made at a planning committee meeting on Thursday.