The partnership is being brought to an end more than three years after Berkeley was selected as the preferred developer for the major city centre regeneration project.
The proposals have become financially unviable due to rising construction and regulatory costs, alongside challenging conditions in the housing market. The decision follows seven years of work to establish the partnership and develop the masterplan.
The original 20-year regeneration vision aimed to replace or improve the ageing 1960s estate, delivering up to 7,500 new homes, green spaces, better transport connections and community facilities.
In a joint statement, the council and Berkeley said: “Increased construction and regulatory costs and a more challenging housing market and economic climate have placed significant pressure on the viability of the programme.”
“Rather than continue with uncertainty and delay, both organisations believe it is better to exit the partnership in a constructive and agreed manner.”
Under the original development agreement, at least 70% of existing homes were due to be refurbished or rebuilt in a single phase to minimise disruption for residents. The plans also included a commitment to provide at least 20% of the new homes as affordable housing.
The council must now reconsider its approach to delivering the regeneration programme and intends to hold further discussions with residents about the next steps.
In a letter to households, the council’s executive director for housing, Paul Langford, and Berkeley Group divisional managing director, Stephen Kirwan, said: “Regeneration is not ending but the way in which it is taken forward will now have to change.”
However, the council and Berkeley have not provided a replacement timetable for the regeneration project.
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