Clarion Housing Group Initiates £80m Procurement for Penge Housing Scheme

What's Happening?

Clarion Housing Group has launched an £80.5 million procurement process for a new housing scheme in Penge, south-east London. The project involves the demolition of existing structures and the construction of 228 affordable homes, along with commercial space. The scheme includes three new blocks, one of which was redesigned to avoid the legal requirement for a second staircase by lowering its height. This decision has drawn criticism from the London Fire Brigade, which labeled it as 'shameful and unethical.' The remaining blocks will comply with post-Grenfell building regulations by including second staircases. The procurement process is competitive, with five firms to be shortlisted based on a pre-qualification questionnaire.

Why It's Important?

The procurement for the Penge housing scheme is crucial as it addresses the pressing need for affordable housing in London. By providing 228 affordable homes, Clarion Housing Group aims to alleviate housing shortages and offer more accessible living options for residents. The controversy surrounding the redesign of one block highlights ongoing challenges in balancing safety regulations with construction costs and design preferences. This situation underscores the importance of adhering to safety standards, especially in the wake of the Grenfell Tower tragedy, which has led to stricter building regulations. The project also represents a significant investment in the local economy, potentially creating jobs and stimulating economic activity.

What's Next?

Interested contractors must submit their pre-qualification questionnaires by October 22, 2025, with the contract expected to be awarded in April 2026. The project is scheduled to run until June 2029, during which time stakeholders will closely monitor compliance with safety regulations and construction progress. The London Fire Brigade may continue to scrutinize the project to ensure adherence to safety standards. Clarion Housing Group will likely engage with local communities to address concerns and provide updates on the project's development.