Labour-run Ealing Council has confirmed it will terminate its development partnership with Peabody Developments Limited after the housing association giant declared a major regeneration scheme for hundreds of homes in Southall was financially unviable.
The council had agreed a deal with Peabody in 2019 to redevelop The Green site near Southall station into 564 homes – half of them affordable – along with 2,900 square metres of commercial and community space. But in July this year, Peabody advised the council that the scheme could no longer proceed, citing rising construction costs, labour shortages, and new building safety rules that have increased design and compliance expenses.
When planning permission was granted in October 2021, Simon Barry, Peabody’s regional development director, said: “We are pleased that our plans have been approved for The Green to become a destination and a home for hundreds of residents. The Green will create public spaces for new and existing residents to live and socialise, whilst connecting them to green space and providing new jobs. We are looking forward to continue working with Ealing Council, the local businesses, community groups and local residents to transform the town centre at The Green.”
Mark Baines, director at Hunters, which designed the development, said at the time: “The successful proposals are a result of a strong partnership between the project team members and the ambition of forward-thinking clients Peabody and the London Borough of Ealing. Our design focuses on the quality of spaces and buildings, connecting people to the place, enabling improved public realm and much needed homes.”
The Hunters design proposed seven towers rising up to 19 storeys. The firm described its vision as: “Situated on a former car park and industrial land, the scheme design reflects the local culture and community and complements the existing character of the area. There are seven towers up to nineteen storeys (it sits within the Heathrow exclusion zone) with layered facades to create visual markers linking back to the new Southall Crossrail Station. More intricate detailing has been introduced at ground and first floor levels in order to connect with pedestrians at a human scale with the tall buildings rising towards their crowns within the skyline.”
A report to the council’s cabinet, due to be considered next week (12 November 2025), recommends formally ending both the Development Agreement and the Compulsory Purchase Order Indemnity Agreement with Peabody. The council will also remove the £16.4m capital allocation linked to the project from its investment programme.
Ealing Council said it had “worked collaboratively” with Peabody and the Greater London Authority to explore ways of restoring financial viability but concluded that the gap was too large. Officers said the Building Safety Act 2022 – which requires tall buildings to have two staircases – had been a decisive factor in making the approved scheme non-viable.
While the decision halts one of Southall’s most ambitious housing plans, the council said it remains committed to regeneration in the area. A report by senior officers said Ealing would “explore an alternative employment-led mixed-use strategy” as part of its Southall Reset Programme, which seeks to balance housing growth with new jobs and infrastructure.
The council will continue to hold its Featherstone Terrace car park and the Medina Dairy Factory site, both within the development boundary, and will work with local landowners to bring forward new proposals. It stressed that it has no intention of launching a fresh compulsory purchase process.
Speaking to EALING.NEWS, an Ealing Council spokesperson said: “Peabody has decided to withdraw from the development project, as long-standing challenges mean it is no longer financially viable to construct.
“There has been no undue cost to the Ealing taxpayer, with appropriate costs being recovered by the council from Peabody.
“Notwithstanding the current economic challenges, which are outside of our control, delivering genuinely affordable homes for the borough remains a key priority for us. A good quality, safe place to call home is the fundamental foundation needed for a decent life.
“This year we have completed and let homes at Copley Close and Buckingham Avenue. We continue to secure new affordable homes in private developments through our planning processes and negotiations. And we have also responded decisively and innovatively to challenging market conditions by buying homes in bulk from private developers previously intended for private sale to let to council tenants instead. We have recently finalised deals to acquire 290 homes currently under construction in Acton and Southall. Finally, our new housing strategy sets out a long-term vision to deliver homes that meet the needs of our residents.”
