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Waltham Forest Council has put on hold the regeneration of two tower blocks on Montague Road due to extra costs caused by the Grenfell Tower fire.
In a meeting yesterday, the council’s cabinet voted not to choose any of the bidders for the redevelopment of the Fred Wigg and John Walsh towers in Leyton and to put the scheme on hold until after the Grenfell Tower Inquiry and Dame Judith Hackitt’s review of building regulations.
A council spokesperson told Inside Housing that this was because “none of the bids met the council’s commercial requirements and the budget available for the scheme”.
The council report stated: “Costs have increased because of the general increase in construction costs, the identification of specific complexities in relation to the blocks and the implications of tower block remodelling of the Grenfell Tower fire.”
The council had planned a major refurbishment of the 15-storey towers, which would have involved demolishing the flats but keeping the main structures, then rebuilding the homes as well as providing another block.
The proposals would have resulted in a 30% loss of social housing.
It has now revoked the demolition notice that was served on 9 March 2015 and terminated the procurement process.
According to the report, concerns arose among bidders between February and December last year that post-Grenfell regulation could force changes to the plans. Bidders wanted the council to bear some financial liability for these risks.
Clare Coghill, leader of Waltham Forest Council, said: “We are committed to ensuring all of our residents have a decent roof over their heads and that they have the support to succeed and make the most of their life chances.
“As we have been unable to find a partner who is able to deliver the homes we demand for our residents within the budget we have set, it is right that we pause and work with the community to identify the best way forward to deliver the changes they deserve and we aim to deliver.”