According to information obtained by the BBC, London councils have allocated approximately £120 million towards housing projects that are currently stalled in the capital. This figure represents over 3,800 private and social housing units, derived from data from 31 of the 33 councils under the Freedom of Information Act.
The suspension of work on these projects has been attributed to a combination of soaring construction costs, mounting strain on council finances, and the implementation of stricter building regulations after the Grenfell Tower fire, among other factors highlighted by local officials.
To address these challenges, the government claims to have introduced a “package of reforms” aimed at expediting safety measures and planning approvals.
Some of the halted developments have been inactive for several years, although there remains a possibility of them being revived in the future. One such project is the proposed construction of new housing on the Waterloo Estate in Romford, located in east London, which appears to be effectively abandoned. Here, Havering Council invested £19 million in 2021 to demolish an old estate with plans for 1,380 “new, high-quality, modern, energy-efficient homes”, but the project was suspended the following year without any construction taking place.
Council leader Ray Morgon attributed the delay to new safety regulations enacted after the Grenfell incident that necessitate the addition of a second staircase to the development. “We are committed to ensuring that our housing is as safe as possible for our residents, but this, of course, escalates costs and is why we had to halt the project,” Morgon explained on BBC Radio 4’s Today program.
Lord Best, the former chair of the Affordable Housing Commission, emphasized that the Building Safety Regulator (BSR), which oversees the development of higher-risk structures, needs to expedite the processing of planning applications, citing delays of up to a year. He recommended that the BSR receive additional resources to effectively manage these applications. Alongside the new regulations, he cautioned that rising construction expenses further complicate the government’s home-building targets.
Rick de Blaby, CEO of the build-to-rent firm Get Living, concurred that the obstacles to constructing new residences in the capital are intensifying. “Securing planning permissions, funding contractors, and delivering homes within a predictable timeframe has probably never been more challenging in my career,” he remarked.
A government representative acknowledged the vital role of the BSR in enhancing building safety while also striving to create a “system that works for developers and safeguards residents.” The spokesperson indicated that reforms are anticipated to accelerate decision-making, allowing “developers to move forward with providing the homes that London urgently requires.”
The BSR reaffirmed its commitment to resident safety, stating, “Establishing a new regulator has been a complex task, yet significant progress has been achieved in a short span. The construction sector must adhere to standards that ensure resident safety in high-rise buildings.”
Niki, a resident of a one-bedroom flat in Hackney with her husband and two sons, expressed her desire for the construction of more affordable housing in her area to occur more swiftly. She shared with the BBC that her husband currently sleeps on a sofa while she shares a bed with their children. Despite her one son having autism, she has been informed that her waiting time on Hackney Council’s housing list is extensive. “At first, I was classified as having medical priority and told to expect a 12-year wait. However, after obtaining evaluations that qualified my son for his own room, I was downgraded and now face a 26-year wait for a three-bedroom unit,” she explained. “I want to support my child in the way he deserves… I cannot currently meet my family’s needs.”
As Hackney Council works to tackle the housing challenges in the borough, a mixed-use development that had promised 80 new homes has come to a halt. The local authority invested £2.1 million in preparation for the Lincoln Court Estate project before construction ceased due to escalating building costs. A council spokesperson described it as a “complex project particularly affected by the rising cost of construction,” though they noted that new homes have been completed elsewhere in the borough. “We will persist in advocating for additional support to facilitate more construction by councils and to address the fundamental issues underlying the housing crisis that affects so many families,” added the spokesperson.
