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A council-owned housing company in London has cut the number of homes in its development plan in response to “current challenging market conditions”.
BexleyCo, which was set up in 2017 by Bexley Council, cut the amount of homes it plans to deliver in its 10-year business plan from 2,000 to 1,200.
In an update to the council’s cabinet last week, the company said that the “more prudent approach to the pipeline… closely matches the development rate from the initial five sites as well as reflects the current challenging market conditions”.
Securing a viable pipeline of development sites had been cited as a “key challenge” for the company, with only one additional site having been identified on top of the initial five included in last year’s business plan.
The company has also shifted the focus on its initial five sites to a build-for-sale basis, removing the “higher-risk” private rented sector from its business plan.
However, BexleyCo said it still has the ambition to increase its pipeline to 2,500 homes, “where market conditions and development opportunities allow”.
Last month, Inside Housing revealed that councils intend to quadruple their development over the next five years, helped by an explosion in delivery through housing companies.
At the time, the companies had delivered a combined total of only 528 homes through development or purchase.
Several of London’s largest housing associations have also been forced to alter their development plans this year in response to difficult market conditions in the capital.
In September, L&Q announced that it was putting a pause on new development projects because of a “serious downturn” in London’s housing market, caused by Brexit, and ongoing fire safety costs.