Peabody Withdraws from Southall 564-Home Project in West London

Key Points:

• Peabody has withdrawn from a major housing project to build 564 homes on The Green, Southall.
• The development was to deliver 267 affordable homes but was cancelled due to financial viability concerns.
• The Building Safety Act 2022’s new requirements, especially the two-staircase rule for buildings over 18 metres, played a significant role.
• Ealing Council will not proceed with a Compulsory Purchase Order and will decommission £16 million of capital from the project.
• Council members debate the future strategy for housing developments; a shift toward mixed-use and employment-led development is considered.
• Toronto City Council opposes Ontario’s Bill 60, which threatens tenant protections amid a housing crisis.
• Port of Olympia explores a new deal with developer Urban Olympia for workforce housing and mixed-use projects.

Why has Peabody pulled out of the West London housing plan?

As reported by Luke Barraclough of the Evening Standard, Peabody has officially abandoned its plans to construct 564 new homes on The Green in ealing/southall/">Southall, a site primed for major regeneration. The housing association decided the scheme was no longer financially viable primarily due to rising costs associated with changes in safety regulations. The developer specifically cited the new mandate under the Building Safety Act 2022, enacted in 2023, which requires buildings over 18 metres tall to have two staircases, significantly increasing construction complexity and expense.

Ealing Council documents reveal the deal had initially promised 267 affordable homes. However, escalating costs led Peabody to conclude the project could not proceed. The council, acknowledging the setback, has decided not to exercise its Compulsory Purchase Order (CPO) powers for the green space and has decommissioned £16 million allocated to this project.

What does Ealing Council say about future housing projects after Peabody’s withdrawal?

In response to Conservative Councillor John Gallant’s inquiry about whether the council will rethink its approach to housing developments — particularly if it might favour smaller projects due to the difficulties faced by large-scale ones — Cllr Shital Manro, Cabinet Member for Good Growth and New Homes, provided clarity.

Cllr Manro highlighted that the Southall project was by no means the largest, stating,

“This was a project for 535 units, which in its definition isn’t a large one. We’ve got others where there are 2,000 units, so basically, smaller projects probably cost more.”

She emphasised that the council is now exploring alternatives given the CPO deadline expiring in May 2026 and the lack of willing development partners.

The council appears to be considering a strategic pivot away from housing-focused regeneration of Southall Green towards a more “employment-led and mixed-use development” plan. Despite the loss, the council reaffirmed its commitment to deliver 4,000 genuinely affordable homes across the borough, as stated by Cllr Manro, who also blamed external factors such as market uncertainty, interest rate changes under Liz Truss, and the COVID-19 pandemic for slowing development progress.

How has Peabody’s withdrawal affected Ealing’s housing plans and finances?

Peabody has reportedly also withdrawn from another local development at Havelock, signalling a broader issue within the borough’s ambitious housing programme. Ealing Council states that termination reports

“are very clear in protecting our interests as the council and the costs we might bear,”

reflecting a cautious stance to safeguard public funds amid the rising development costs.

The £16 million capital previously earmarked for The Green housing project is now decommissioned, freeing up those resources but also highlighting the financial strain imposed by recent regulatory changes and economic conditions.

What are the concerns raised by Toronto councillors about Ontario’s Bill 60?

Switching focus to Canadian housing news, as reported by CBC’s staff writer Mina Ager for CBC News, Toronto City Councillors voted overwhelmingly (23 to 1) to oppose Bill 60, introduced by the Ontario government under Premier Doug Ford. The bill, titled the Fighting Delays, Building Faster Act, aims to speed up building approvals and increase housing supply but has been criticised for severely weakening renters’ rights.

Mayor Olivia Chow led the charge against the bill, emphasising that renters—who make up roughly half of Toronto’s population—deserve security and fairness. The legislation threatens to reduce tenants’ ability to appeal eviction decisions and shortens the timeline landlords have to commence eviction proceedings. Crucially, it removes the obligation for landlords to compensate tenants evicted because the landlord or their family intends to move into the property, a move city housing officers warn will likely increase homelessness and strain eviction prevention services.

Doug Rollins, executive director of Toronto’s housing secretariat, warned in an official letter that Bill 60’s “13 tenancy-related initiatives” would heighten the risk of evictions and weaken tenant protections across the province, jeopardising housing stability.

What are councillors saying about the impact of Bill 60 in Toronto?

Several Toronto councillors condemned the provincial government’s approach amid a deep housing crisis. Councillor Alejandra Bravo implored the public and other municipalities to stand united to protect renters from rising evictions, while Councillor Josh Matlow accused the Progressive Conservative government of favouring developers’ financial interests over the welfare of ordinary Ontarians.

Councillor Stephen Holyday was the sole vote against the motion, arguing that Bill 60 aims to incentivise rental housing construction, which is crucial in tackling supply shortages. He criticised city council for resisting efforts to simplify housing development.

The motion also asks the Ontario government to extend rent control protections to rental units built after 2018, an issue the city sees as critical to long-term affordability.

What is the Port of Olympia planning for its remaining parcels of land?

From the Olympia Daily News, reporter Emily Carman reported that Port of Olympia staff are currently exploring an exclusive negotiation agreement with Urban Olympia, a local development firm led by Walker John. The negotiation concerns three undeveloped parcels of land on East Bay, with sizes approximately 20,000, 40,000, and 60,000 square feet.

Mike Reid, the port’s community and economic development director, explained that Urban Olympia has a proven record in mixed-use developments in downtown Olympia, including the previous Westman Mill project, and the port sees this potential partnership as a way to boost density and deliver workforce housing on the site.

The proposed agreement, which would last 180 days, is a commitment to explore feasibility rather than a lease or sale. It includes shared site planning efforts, with the port contributing up to $50,000, and Urban Olympia pledging to target at least 40 units for workforce housing affordability.

Given the environmental sensitivities due to legacy contamination, site planning will adhere strictly to state Department of Ecology covenants.

Commissioners, including Jasmine Vasavada, expressed strong support for the proposal, anticipating improved connectivity between downtown Olympia and the port area and enhanced economic development benefits.