Key facts
- Only 34 of 3,000 planned homes have been built in Purfleet-on-Thames.
- Rising construction costs and regulations have added £76,000 to the cost of building a home since 2020.
- The UK was the slowest country for infrastructure pre-construction work among those studied by Boston Consulting Group.
Near Purfleet-on-Thames, east of London, a £1 billion regeneration plan announced 17 years ago has stalled, with only 34 of 3,000 planned homes built. This situation exemplifies how rising construction costs, driven by new policy demands and higher taxes, are hindering Britain's economic growth and housebuilding targets. Investors are hesitant due to sluggish demand and increased regulatory requirements, including those for building safety, biodiversity, and emissions reduction. The Home Builders Federation estimates that government policy has added £76,000 to the cost of building a home since 2020. Major homebuilder Taylor Wimpey has halted new projects in London due to these rising costs. The problem extends to infrastructure, with the Lower Thames Crossing road tunnel, first considered in the 1980s, only now beginning construction after significant delays.