Monday, 1 November 2010

Kidbrooke regeneration at risk from government cuts

Latter phases of the Kidbrooke regeneration could be delayed or not go ahead at all following cuts to affordable housing, experts have warned.

The chancellor announced last month that subsidies for affordable housing would be cut by 50%.

In order to keep building new homes viable the government said that social rents would be allowed to rise to 80% of the normal rate.

However tenants at the Ferrier Estate have been promised new housing at the same rent as before, which could make building these new homes not cost effective.

According to a report by

"Housebuilders and the [Chartered Institute of Housing] have expressed concerns about the ability of large estate regeneration projects, such as Elephant & Castle in Southwark, Kidbrooke in Greenwich and Park Hill in Sheffield, to proceed. Previous tenants had been promised new homes at the same rent, but lower government subsidy may make this unviable."

Berkeley Homes recently admitted that land intended for the latter phases of the Kidbrooke regeneration had been placed into its "land bank" because of uncertainty over its future.

On page ten of their annual report they state that it is now in the "long-term pipeline" because "the development outcome is uncertain due to planning policy, viability or issues surrounding vacant possession."

Now it's clear that the later phases of the regeneration could be at risk altogether.

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