£5bn Greenwich Peninsula regeneration has 'stalled', admits client

The £5bn Greenwich Peninsula scheme - one of the biggest regeneration projects in the Thames Gateway - has "stalled", the man in charge of its development has admitted.

Andrew Storey, joint chief executive of Greenwich Peninsula, a joint venture between Lend Lease and Quintain, made the comments at the Thames Gateway Forum last week.

He warned it could be years before prices recovered to the extent that residential developments in the region become commercially viable again.

Storey said: "We do have some fundamental issues with the development over the next few years. Is Greenwich peninsula on track? Conceptually it is on track, but practically it has stalled slightly."

The project will eventually see around 10,000 homes built on 190 acres on the Greenwich Peninsula, and is expected to take 15 to 20 years to complete. So far only around 1,000 homes have been completed.

It has also emerged that construction on a development of 229 riverside flats by Bellway is on hold due to the severity of the downturn.

A spokesman for the house builder admitted that construction work had "paused" but said that the company hopes work would restart "early in 2009".

News of Greenwich Peninsula's struggles came in the same week that Housing Minister Margaret Beckett insisted the Thames Gateway was still "strong".She said: "The downturn poses new challenges for towns and communities. Butwe have sound reasons to remain optimistic for the Gateway's long-term prospects."