Central London Flats Remain Vacant for Four Years, Exceeding Budget by £9 Million
Newly constructed flats in Central London, which stood empty for four years due to extensive delays, have ultimately cost the local authority over 25 percent more than originally projected. The Local Democracy Reporting Service has uncovered that the final expenditure for Black Raven Court soared to £42.1 million, a staggering £9 million above the initial estimate of £33.43 million.
Series of Setbacks Plague Housing Development
The 66-home development, located on the edge of the City of London's Golden Lane Estate but technically within Islington's borders, encountered multiple obstacles that postponed its completion. Key issues included a dispute with the original contractor, ISG, over materials used, followed by ISG's insolvency. Additionally, securing a Building Control Completion Certificate proved challenging, while the COVID-19 pandemic and broader supply-chain disruptions further exacerbated delays.
Originally scheduled for completion in summer 2021, the residential tower saw its timeline pushed back repeatedly, leaving the units unoccupied for years. This vacancy not only deprived families of much-needed housing but also resulted in lost rental income for the Housing Revenue Account, impacting funds available for urgent repairs and renovations elsewhere.
Residents Finally Move In Amid Cost Overruns
After years of anticipation, tenants began moving into Black Raven Court on February 23. The development, spearheaded by the City of London Corporation, features contemporary kitchens, spacious living areas, and energy-efficient designs aimed at providing comfortable, affordable homes. The flats are allocated between City of London and Islington residents, addressing social housing needs in the area.
Councillor Una O'Halloran, Leader of Islington Council, emphasized the importance of such projects, stating, "We believe that our residents deserve a safe, secure, and genuinely affordable place to live – and developments like Black Raven Court are at the heart of that."
Council Acknowledges Frustration, Vows Improvements
In response to a Freedom of Information request, the City of London Corporation admitted that the delays led to significant cost increases. A spokesperson expressed regret over the frustration caused, noting, "Large and complex building projects can often be subject to delays and higher than expected costs, and in this case these arose from a combination of factors beyond our control."
Despite the setbacks, the Corporation highlighted that Black Raven Court now offers 66 high-quality social rented homes built to modern safety and sustainability standards. The experience will inform future risk management, programming, and contractor oversight as part of a broader £300 million investment in housing stock, including other new social housing schemes like Sydenham Hill.
Sue Pearson, Chair of the Golden Lane Estate Residents' Association, criticized the cost overrun, saying, "An over 25 per cent increase in the planned cost of Black Raven Court is shocking. Added to this the loss of 66 homes for families and the loss in income for the years that the block has been empty has meant that the Housing Revenue Account has not had the funds to do the urgent repairs and renovations to our homes."
