You are viewing 1 of your 1 free articles
Costs on east London council’s flagship tower refurbishment soar by £24m
Costs on the first phase of Newham Council’s flagship estate regeneration in Stratford have risen by nearly 45%.
Costs on the first phase of Newham Council’s flagship estate regeneration in Stratford have risen by nearly 45% #UKhousingA £24m cost increase was approved by the east London council’s cabinet this week, pushing the budget for retrofitting the 23-storey tower from £54.1m up to £78.1m.
The renovation of James Riley Point near the Olympic Park, which is yet to start, is the first phase of Newham’s £1bn regeneration of the Carpenters Estate.
According to a cabinet report, the cost increases are partly down to construction inflation caused by geopolitical events such as the war in Ukraine, as well as design changes to the scheme.
Read more
A breakdown reveals that, in addition to £6.2m in inflation, changes to the design and specification of the scheme have added £3m. These include enhanced fire safety measures such as additional lifts and ramps, and “structural modifications” to the tower.
A Newham Council spokesperson said: “In addition to provision for construction inflation and uplifted contingency to reflect current uncertainty in the construction market, the increased budget accommodates the cost of revised planning and building requirements.”
The new budget also allows for undisclosed costs associated with using a compulsory purchase order (CPO) to secure vacant possession of the building.
James Riley Point has been largely empty since the mid-2000s, when many residents were moved out. However, four leaseholders have refused to vacate and the final deadline for negotiations passed in December.
A proposal to use a CPO, which allows councils to purchase homes without the consent of the owner, was approved last week.
The council spokesperson added that Newham continued to engage with the leaseholders and was “committed to reaching a resolution if at all possible”.
The plans for James Riley Point, approved in May last year, mean the existing 1960s building will be stripped back to its concrete frame and rebuilt to Passivhaus standard.
The block will have 136 homes in a mix of social rent, London Affordable Rent and shared ownership. The scheme also includes a new community centre.
Populo Living, Newham’s housing company, put forward a planning application for the Carpenters Estate last August.
The project is one of the biggest regeneration projects in London: 2,151 new homes will be built across the 23-acre site, with more than 50% available for social rent.
Residents backed the regeneration in 2021, with 73% voting in support of it in the mayor’s estate regeneration ballot system.
The project is the latest in a long line of attempts to redevelop the 700-home Carpenters Estate, which was completed in 1972 on a site by Stratford station. It has been earmarked for redevelopment for two decades.
In 2013, a plan to demolish the estate to make way for a new University College London campus was axed following huge local opposition.
Related stories
