Council pauses four projects for review after cost hikes
The Royal Borough of Kensington and Chelsea (RBKC) has paused four housing projects to review their viability after inflation led to a hike in construction costs.
The delay to these projects came as the council also cancelled one small project at St Helens Gardens in North Kensington altogether.
The details emerged in a council report, which gave an update to the housing and communities committee on progress with delivery of the council’s New Homes Programme (NHP) and the effects of inflation on construction costs and the programme.
In 2018, RBKC committed to building 600 homes across the borough, with at least 50% for social rent. Much of the programme, which is being delivered in phases, is under way.
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However, the report said: “There are currently four projects within phase three of the New Homes Programme.
“Before any of these projects can proceed to contract for delivery on site, further work is being done to assess feasibility, design, cost and risks.”
The projects include Latymer Church, Edenham Way, Walmer Road and Lancaster Road.
The report said that all four projects have been impacted by inflation of construction costs and are “paused pending further option appraisals and viable solutions to deliver the projects”.
“Subject to feasibility, planning consent and financial viability, the four sites are expected to deliver between 146 and 186 homes,” it said.
The council decided to formally end the St Helens Gardens project, which involved eight new homes, over delays it faced pre-construction.
Sof McVeigh, lead member for housing at RBKC, said: “Despite the challenging climate in which we are working, we are still committed to delivering safe and secure homes as part of our New Homes Programme and at least half of them will be for social rent.
“We are always looking at the best way to deliver new homes for our residents especially in the current climate where, like other councils, we have been faced with rapid inflation and increasing costs across the construction industry.
“This has meant some sites have been paused while we work out the most efficient means of delivering new homes and facilities for our communities.
“We are already working with development partner Mount Anvil to deliver the Lots Road scheme in the south of the borough.
“We were delighted to welcome tenants into our first new homes at Hewer Street last year, with more due to move in during 2024.”
RBKC revealed in 2022 that some of its housing projects may be delayed or cancelled because of the “extreme volatility within the UK economy”.
In December, Lewisham Council revealed that it had revised its development programme amid “challenging” economic conditions.
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