West Hendon and Stonegrove regeneration projects 'are safe'

12:37pm Wednesday 7th May 2008

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Fears have been raised over the future of two major regeneration schemes, after the building firm responsible for them decided to sell its commercial development arm.

Barratt Developments, Barnet Council's development partner for the West Hendon and Stonegrove estates, saw its share price drop by 70 per cent in a year, from 1,121p last April to 270p this week. The house builder was forced out of the FTSE 100, when it hit 368.50p in January.

The sale of Barratt's commercial development division, Wilson Bowden, was announced last month, shortly before Britain's biggest housebuilder, Persimmon, revealed its plans to stop building homes on new sites owing to poor sales.

Myk Tucker, of the residents' group No Over-development in Edgware (NODIE), is concerned that Barratt may follow suit and pull out of the West Hendon and Stonegrove regeneration projects.

He said: "If Persimmon has done that, you have to wonder what Barratt will do. It's a great concern. Anything that might jeopardise Barratt could have a huge effect on a number of residents.

"What many people want to know is: what is plan B in the event that either of these major schemes hit the wall? And, if so, what costs will Barnet and its council tax payers incur?"

Andrew Storey, managing director of Barratt West London, denied that its share price would affect the regeneration projects.

He said: "Barratt is firmly committed to maintaining its position as a leader in urban regeneration. Our proposals for the development of the Stonegrove and West Hendon estates will be completely unaffected by any stock market fluctuations."

Under the £200 million Stonegrove estate project, due to be completed in 2013, 603 homes will be knocked down to make way for 937 new homes, a community square, a community hall and a church.

Negotiations for the £500 million West Hendon estate development are set to wind up later this month, with construction expected to start later this year. All 680 units on the estate will be knocked down and 2,171 new units built.

Barnet Council reassured residents that Barratt would take full financial responsibility if it were forced to withdraw from the projects.

A council spokesman said: "Barratt is still progressing the West Hendon and Stonegrove schemes in partnership with the council and has not indicated a change of position at this stage.

"If such a position were to occur - whereby a developer partner wished to withdraw from a scheme then that developer would be responsible for their investment and sunk costs to date and therefore the costs would not be transferred to Barnet or the taxpayer."