L&Q backs out of £82m affordable housing buy

London & Quadrant Housing Trust has backed out of a deal to provide £82m in forward funding for HUB’s 100% affordable housing scheme in Abbey Wood, south-east London. Abbey Place comprises 245 flats in two towers of 21 and 13 storeys, ground-floor retail, leisure uses and a public square. The housing association made an offer to acquire the homes as 100% affordable tenure, but has since backed out, following a strategic review of accounts at the end of January. On 31 January, L&Q reported a trading update for the period ending 31 December, projecting a £150m shortfall against a surplus target of £340m. The housing association pointed to weakened consumer sentiment in the London sales market and said while market conditions were tough the housing association would “be more selective about new business opportunities”. A spokesman for L&Q said: “After careful consideration, we made the decision not to proceed with this particular development. We still expect to complete more than 2,900 residential units and commence more than 5,500 new -build residential units this year. Our door remains open to working with partners to build the homes the UK needs. “L&Q remains committed to delivering 100,000 homes over the next 10 years. With the current political and economic uncertainty, it is only right that we take a prudent approach to managing risks and ensuring the viability of new schemes.” The Abbey Place scheme sits at the gateway to the Thamesmead regeneration area, next to Abbey Wood Elizabeth Line Crossrail station, due to open in 2019. HUB bought the site in December 2015 with consent for a hotel and flats, but revised the scheme with architect shedkm. In October 2017, HUB received planning permission from Greenwich council for the 250,000 sq ft scheme including 245 homes, with GLA confirmation of the approval in January 2018. Construction was due to begin in Q2 2018, but has been delayed as HUB seeks finance. The London developer is now in understood to be in discussions with a number of parties to fund the delivery of the scheme. HUB declined to comment. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette