New Contractor Steps In After Henley Collapse Halts Croydon Housing Project

Southern Housing’s 116-home development on Cherry Orchard Road, Croydon, is back on track following months of uncertainty after Henley Construct—its previous contractor—collapsed in April 2023. The project, left unfinished and owing millions to suppliers, has now been handed to Formation Design & Build, marking a significant step forward for the much-delayed scheme.

Key Takeaways

• Henley Construct collapsed in April 2023, stalling multiple projects including Croydon’s Cherry Orchard Road.
• Southern Housing appointed Formation Design & Build to complete the 116-home scheme.
• The development includes a nine-storey building with a mix of studio, one-, and multi-bedroom flats, as well as spaces for cycling, parking, and communal living.
• Suppliers and creditors face unrecovered debts after Henley’s administration.

Background On The Cherry Orchard Road Scheme

Originally valued at £35.2 million, the Cherry Orchard Road project was designed to address housing demand in Croydon. Plans feature a blend of private and communal amenities, sustainable drainage, refuse and recycling areas, and comprehensive landscaping. The building’s nine-storey structure is set to host a mix of accommodation sizes to appeal to a broad demographic, supporting local regeneration goals.

The Collapse Of Henley Construct

The progress ground to a halt after Henley Construct went into administration, leaving incomplete work across several sites and substantial debts to over 200 suppliers, subcontractors, and trade creditors. Southern Housing, fresh off a merger with Optivo the previous December, filed a claim for £36 million in losses and damages. Disappointingly, administrators have since indicated there is little hope for creditors to recover lost funds.

Formation Design & Build Takes Over

West London-based Formation Design & Build, specialising in large residential builds, was selected to revive the Croydon development. Their experience— including major projects like the £100 million Ashley Road redevelopment — gives fresh hope that this long-delayed site will finally be completed to its original vision. While financial details remain undisclosed, stakeholders anticipate significant progress in the coming months.

Broader Impact And Next Steps

Henley’s administration didn’t only affect Cherry Orchard Road. Two other Southern Housing projects in South London—one in Thornton Heath and another in Tulse Hill—were also disrupted. Across these sites, unpaid bills left trade partners empty-handed.

For Croydon residents and future tenants, the restart on Cherry Orchard Road represents a positive shift after a year of setbacks and delays. With work now resuming under Formation Design & Build, attention will remain fixed on the project’s pace and the longer-term prospects for recovering from the widespread disruption triggered by Henley Construct’s collapse.

References

• Collapsed Henley replaced on Croydon housing scheme, Construction News.