Hackney Council to Spend £30m on Stalled Britannia Project

Hackney Council is set to allocate £30 million to resume the final stage of the Britannia Project, located in Shoreditch Parkside. The project's last phase, known as 2b, was halted in June when its main contractor, Ardmore Construction Group Ltd, entered administration. This intervention by the council aims to prevent further financial losses and provide clarity to stakeholders.

Wates Construction Ltd has been appointed to complete the next stage of works for an estimated £30.1 million. This contract, approved on November 2, includes VAT and covers making the buildings watertight and purchasing critical construction materials, alongside site management. The original completion date for phase 2b was late 2026.

Increased Project Costs

The total cost of the Britannia regeneration is now likely to exceed its revised budget of £196.8 million. When initially approved in 2018, the entire masterplan was estimated at £384 million. Phase 2b was first estimated at £153.9 million in 2023, but the council now anticipates costs surpassing the revised budget.

The final phase of the development will deliver 371 homes in total. This includes 51 homes designated for social rent, 30 shared ownership properties, and 290 flats for sale at market rate. These market-rate flats are intended to help fund the leisure centre, affordable housing, and a new school associated with the regeneration.

The collapse of Ardmore Construction Group Ltd in June followed a High Court ruling that made the company liable for £14.9 million in historic claims related to cladding safety. Hackney Council's Executive Director of Housing, Rickardo Hyatt, stated that restarting the project quickly is essential to mitigate further financial impact and limit losses.

Future Contract Awards

Councillor Alastair Binnie-Lubbock, Cabinet Member for Regeneration, Planning and Inclusive Neighbourhoods, indicated a phased approach to completing the project. The council expects a second contract award in Spring 2027 for internal works and landscaping, which will be brought before the Cabinet Procurement and Insourcing Committee for approval.

The Britannia Masterplan began in 2016, transforming 3.2 hectares of council-owned land. Previous phases have delivered a new leisure centre, the City of London Academy Shoreditch Park secondary school, and new public spaces. The social rent homes in the final phase will be used to rehouse some residents from the Colville Estate.