The major regeneration scheme at The Green, Southall is no longer financially viable, and Ealing Council has confirmed it will terminate its development partnership with Peabody Developments Limited.

The original 2019 agreement aimed to redevelop the site near Southall station into 564 new homes, half of them affordable, alongside approximately 2,900 square metres of commercial and community space. The project, which included plans for seven towers rising up to 19 storeys, was designed to provide public spaces, connect residents to green areas, and create local jobs.

However, Peabody notified the council in July 2025 that the development could not proceed due to rising construction costs, labour shortages, and new safety requirements under the Building Safety Act 2022, which mandate a second staircase in taller buildings. These factors, combined with the costs of redesigning the project and resubmitting for planning approval, rendered the scheme unworkable

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A council report, due to be considered at the Cabinet meeting on 12 November 2025, recommends formally ending both the Development Agreement and the Compulsory Purchase Order Indemnity Agreement with Peabody. The council will also remove the £16.4 million capital allocation linked to the project from its investment programme.

Peabody and the Greater London Authority had previously explored options to restore financial viability, but officers concluded that the funding gap was too significant. A council spokesperson emphasized that no undue cost has fallen on Ealing taxpayers, as costs incurred were recovered from Peabody.

The collapse of the scheme represents a significant setback for Ealing’s housing targets. The borough aims to deliver 4,000 affordable homes by 2026, but so far only around 1,600 are completed or under development. The council highlighted ongoing challenges across London, including slow housebuilding, high rents, and long waiting times for council housing.

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Local campaigners who opposed the Southall redevelopment welcomed the news, noting that community action played a role in delaying the project. A spokesperson said:

We campaigned throughout 2023 to fight the redevelopment of the Southall Dominion Centre site and succeeded in forcing a public inquiry. We made our case at Ealing Town Hall over ten days.

Although the inquiry didn’t go in our favour, the delays our campaign created contributed to Peabody’s withdrawal due to increased costs. The redevelopment is now officially dead.

The lesson and hope for others is clear: keep campaigning, and protect and fight for your communities.

While the project will not proceed, Ealing Council confirmed it remains committed to regeneration in Southall. The council will retain the Featherstone Terrace car park and the Medina Dairy Factory site within the development boundary, working with local landowners to explore alternative employment-led mixed-use strategies as part of its Southall Reset Programme. The council stressed it has no intention of launching a new compulsory purchase process.

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The spokesperson also highlighted other recent housing initiatives:

• Completion and letting of homes at Copley Close and Buckingham Avenue
• Securing new affordable homes in private developments through planning negotiations
• Bulk acquisition of 290 homes currently under construction in Acton and Southall
• Implementation of a new long-term housing strategy to deliver safe, good-quality homes meeting local needs

Despite the current economic challenges, Ealing Council reaffirmed its commitment to providing genuinely affordable housing for residents, emphasizing the importance of safe and suitable homes as the foundation for a decent quality of life.