More than 100 affordable homes in west London to be demolished after contractor goes bust.
Ealing Council stated that dismantling some of the sites under development or nearly built would be a more ‘cost-effective and better long-term option’.
More than 100 affordable homes built on behalf of a west London authority will be demolished due to the contractor’s insolvency.
Ealing Council stated that dismantling some of Henry Construction’s under construction or nearly completed sites would be a more “cost-effective and better long-term solution” than continuing to build. This features 53 residences on the Dean Gardens development in West Ealing.
An additional 25 properties will be demolished at Chesterton and Evesham Close in Greenford, 11 at Wood End in Greenford, 10 at Shackleton Road in Southall, and six at Norwood Road in Southall.
This was promoted by Ealing Council in February 2022 as part of the council’s commitment to constructing more than 2,500 affordable houses by May 2022. All 105 of these residences are being demolished.
In January 2022, Henry Construction was awarded a £40 million contract by the local authority to deliver 105 Passivhaus-standard new homes across these six sites – all designed by Bell Phillips – and work started on the schemes later that year.
The builder went into administration nearly 18 months later, in June 2023, leaving some buildings unfinished but close to completion.
At the time, the council stated that it was committed to finishing all of the homes, however this position has subsequently altered.
Between 2022/23 and 2023/24, Ealing’s affordable housing market plummeted dramatically. This resulted in only 13 house starts last year, down from 2,070 the previous year.
Furthermore, the council is allowing previously agreed-upon affordable housing developments to remove any affordable offers after planning clearance is given, claiming market conditions.
In January 2026, the council’s planning committee approved the removal of all affordable flats from an 18-story development in Acton, despite a commitment to offer at least 35% affordable housing in all new housing plans.
An Ealing Council representative informed the Local Democracy Reporting Service [LDRS]:”Following the epidemic, several national and local construction contractors went out of business, including Henry Construction, which was building new homes for us.
The sudden collapse of Henry Construction in 2023, a private sector failure, resulted in the suspension of progress on 60 sites overnight, with substantial ramifications for Ealing Council and other authorities.
“Since then, we’ve been working hard to determine the best way forward for the sites.
Our thorough investigations have led us to believe that dismantling some of the existing, partially built structures will be a more cost-effective and long-term option than attempting to resume construction where Henry Construction stopped off.
“Our borough’s housing crisis is severe; more than 7,000 local families desperately need a safe, affordable place to live.
Despite the setback caused by Henry Construction’s bankruptcy, we have adapted innovatively to adverse market conditions and are currently conducting one of London’s largest council homebuilding projects.
Last year, Ealing Council produced more new affordable houses to let than any other London borough.
“We also responded decisively to adverse market conditions by purchasing homes previously intended for private sale in bulk from developers and renting them to council tenants instead.
We recently completed negotiations to purchase 290 homes in Acton and Southall.
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