Peabody pulls out of 564-home housing plan for west London

"Peabody has pulled out of plans to construct 564 new homes on The Green in Southall. Ealing Council documents indicate that the developer decided the development was no longer financially viable. The council had agreed a deal with Peabody to redevelop the site in Southall, which would have provided 267 new affordable homes. However, Peabody, citing increasing costs and expenses, says the scheme can no longer go ahead."

"Peabody has cited regulation changes caused by the Building Safety Act 2022 which was put into law in 2023. Specifically, it claims that the most significant reason for its termination was the new requirement to provide two staircases in London for buildings over 18 metres. Conservative Councillor John Gallant asked if the council will now review larger housing projects, and whether the authority ought to opt for more smaller developments citing the issues caused by Peabody's withdrawal."

Peabody withdrew from plans to build 564 homes at The Green in Southall after concluding the development was no longer financially viable. The scheme included 267 affordable homes under a council redevelopment deal, but rising costs and expenses led Peabody to terminate the project. The council will not use Compulsory Purchase Order powers for the green and has agreed to decommission 16 million of capital allocated to the scheme. Peabody cited regulatory changes from the Building Safety Act 2022—notably the London requirement for two staircases in buildings over 18 metres—as a major factor. Councillors debated project sizing, and the council is considering alternative partners and an employment-led, mixed-use approach.

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