Redevelopment projects can be fraught with issues and obstacles. Sadly, sometimes they can result in delays or cancellations. However, in many cases there can be solutions even if it results in extra costs. We want to look at a case study of this today for an ongoing development in Peckham. Then, if you want help with guaranteed rent in Southwark, you can rely on us.

The project

Southwark Council initially gave a contract to Equans to demolish and redevelop the Rye Hill Park Garages site in 2019. The aim was to create 23 new homes for social rent, boosting the council’s stock of affordable, accessible housing.

The project got permission, with the idea to create two new buildings of four and six storeys. They will link to allow residents to move between the blocks.

The initial timeline for the project was for completion in spring 2022. However, there were delays and work is still ongoing. Projects should always plan for some delays, ensuring there is wiggle room with deadlines. Luckily, if you do face a delay we can arrange guaranteed rent in Southwark in a matter of days so that can be up and running rapidly.

Issues

Sadly the project hit its first hurdle in 2020. The previous year there were routine surveys to examine the structures, however access to the roof was limited. Before demolishing the garages, there was another round of surveys to check for asbestos. They found it was present in the roofs. This meant a delay and additional costs to safely remove and dispose of it before demolition and redevelopment.

The second issue was because of a cable beneath the site. The depth was not known with the original topographic surveys. When work began, it had to pause to get a wayleave agreement from Virgin Media. This was necessary to allow the work to continue close to the communication company’s equipment.

Costs

Unfortunately, the delays and additional findings brought an increase in the cost of the redevelopment. Originally the contract was for £6,039,681. However, with more costs for the asbestos and agreement for the cable plus others, it went up to £10,001,486.

The Council also said that projects in general are more costly now because of economic conditions. It is significantly more expensive to build today and lending money is more expensive due to interest rates.

Even with everything though, the council has remained committed to finishing this project and delivering the housing. The hope is it will be complete by spring 2024.

Do you need guaranteed rent in Southwark?

London has plenty of great locations if you are thinking about investing. Southwark has a few of them, including popular Peckham, Bermondsey, and Rotherhithe. You can find great properties all over the Borough, and locations with plenty of things to love.

If you do invest, you should also consider coming to us for guaranteed rent in Southwark. It can save you money and ensure you avoid the risk of losses. Contact us today to learn more about it and why it is the smartest choice.