A report for the mayor by Greater London Authority planners, published last week, said developer Hammerson’s proposal for the key regeneration site "would result in unacceptable and significant negative impacts".
The report said the density, height, massing and layout of the scheme was "not appropriate" for the 4.4-hectare site, near to Liverpool Street station and Brick Lane. The proposal would result in "significant building mass" in part of the site, which would result in an impact on the daylight and sunlight received by nearby properties, it said.
The planning application includes plans for up to 1,356 homes as well as more than 65,000 square metres of offices and other mixed uses. The application includes 12 tall buildings on the site, which straddles the boundary between the London boroughs of Hackney and Tower Hamlets, and is also close to the City of London.
The proposal would have harmful heritage impacts, the report said, and taken together, these issues would "significantly outweigh the potential public benefits of the scheme". The report added that "a revised scheme could reduce the impacts to an acceptable level and still deliver significant public benefits".
However, the report accepted that revised levels of affordable housing proposed – 15.8 per cent across the site – were acceptable, as "the maximum reasonable amount of affordable housing, taking into account the individual circumstances of the site and the need to encourage rather than restrain residential development".
A statement from Hammerson said the developer was "disappointed" with the recommendation. "The Goodsyard is one of central London’s most important strategic sites which we believe will contribute to the long-term growth and success of London," it said.