London developer halts major project as housing viability hits crisis point
British Land faces sales that are behind target, having sold about 30% of the 186 homes in the first phase
British Land, the developer behind a major London regeneration project, has halted work on the second phase of its Canada Water development due to soaring costs and low sales. The project, which spans 21.4 hectares, was expected to deliver 186 homes but is now only expecting to deliver fewer apartments. The decision comes as residential development in London faces a viability crisis, with investors struggling between high mortgage rates and rising construction costs.
British Land, along with its joint funder AustralianSuper, did not comment on the decision. The developer's latest budget projections estimate the gross development value at £5.6 billion. The situation poses a threat to the Labour government's housing output pledge and growth agenda, as London's construction has plummeted to historic lows.
Other top-tier developers, such as Berkeley Group Holdings and Taylor Wimpey, have also indicated potential exits from the capital's housing market due to similar challenges.
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