Capco may give up control of housing estates in Earls Court development

Capital & Counties confirmed on Wednesday that it is in talks with the London borough of Hammersmith & Fulham about significant changes to the development of the property developer's 77-acre Earls Court development.

The local council wants to retake control of the West Kensington and Gibbs Green housing estates at the heart of the scheme, Property Week reported overnight.

A revised masterplan would result in a revision of CapCo’s plans a 10.1m square foot development including 7,500 homes, offices, hotels, work space, education, cultural and community facilities, as well as a new five-acre park, the report said.

Council leader Steve Cowan wrote a letter to residents on Tuesday criticising Capco's "weak and insufficient provision" for affordable homes, as the contract "failed to guarantee to provide replacement, like-for-like homes, for all current estates’ residents, which meant many residents would not be re-housed".

Capco said on Wednesday that the "enhanced masterplan" will "seek to deliver an increased number of homes across all tenures throughout the wider Earls Court Opportunity Area", and admitted it "could involve" the borough "taking the lead on future plans" for the two estates.

It added that if the new masterplan is not agreed, the current binding agreement in relation to the estates will remain in place.

Deutsche Bank said overnight that it expected a revised masterplan in 2018 with public consultation intending to secure 30% density gains from the 6,800 homes currently, with 35% affordable housing on the incremental consent.

"However, we assume delays to progress due to the RBKC Local Authority allocating greater resources to existing housing stock post the Grenfell Tower fire."