Story perspectives

Peabody Abandons Southall Housing Project Amid Rising Costs

11/14/2025

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Summary

Story summary

Peabody has withdrawn from a plan to build 564 homes in Southall, west London, due to financial viability issues stemming from rising costs.
Ealing Council will not proceed with a Compulsory Purchase Order for the site and will decommission the £16 million allocated for the project.
The Building Safety Act 2022, which requires two staircases for buildings over 18 meters, significantly influenced Peabody's decision.
Ealing Council is now considering a shift towards mixed-use development while aiming to deliver 4,000 affordable homes despite rising interest rates and material costs.

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Story summary

Peabody has withdrawn from a plan to build 564 homes in Southall, west London, due to financial viability issues stemming from rising costs.
Ealing Council will not proceed with a Compulsory Purchase Order for the site and will decommission the £16 million allocated for the project.
The Building Safety Act 2022, which requires two staircases for buildings over 18 meters, significantly influenced Peabody's decision.
Ealing Council is now considering a shift towards mixed-use development while aiming to deliver 4,000 affordable homes despite rising interest rates and material costs.