Down by the River Thames, a failure to build holds back Britain's growth
SPY•A £1 billion regeneration plan in Purfleet-on-Thames remains stalled 17 years after it was announced, with only 34 of about 3,000 planned homes built. Rising construction costs, policy requirements and sluggish demand are weighing on UK housebuilding and infrastructure projects.
1. Purfleet project stalled
Purfleet-on-Thames officials are conducting due diligence before seeking a new developer for the regeneration project. The previous developer struggled to raise financing for high upfront costs, and a KPMG review said an initial phase would require £118 million in public funding and below-normal affordable housing provision.
2. Costs weigh on building
The Home Builders Federation estimates that £76,000 has been added to the cost of building a home since 2020, with advocacy group Prosper UK attributing half of that to government decisions on regulation, policy and tax. The federation says 370,000 homes need planning permission each year to meet the government’s target of 1.5 million homes between 2024 and 2029, while approvals are running at 58% of that level. Taylor Wimpey has said rising costs and affordability concerns mean it will not start new projects in London.
3. Infrastructure delays
The £10 billion Lower Thames Crossing, first considered in the 1980s, has begun construction after delays tied to political uncertainty and a lengthy regulatory process. The article says planning reforms could add 0.2% to the UK’s potential output by 2029 and 0.4% in the mid-2030s, but industry experts say lower building costs will also be needed for that growth to materialise.
