Formation Design & Build has been appointed to finish a stalled Croydon housing project after the original contractor, Henley Construct, went into administration, highlighting ongoing challenges in London’s residential construction sector.
Southern Housing has appointed Formation Design & Build to complete a stalled housing development in Croydon, after the original contractor, Henley Construct, went into administration in April 2023. The project, situated on Cherry Orchard Road, had been left in limbo following Henley Construct’s collapse, which halted construction at multiple sites and left the contractor owing millions to suppliers.
The Cherry Orchard Road scheme, initially valued at around £35.2 million, involves the construction of a nine-storey building containing a mix of studio, one-bedroom, and multi-bedroom flats. The development also includes private and communal amenities, refuse and recycling storage, cycle parking, car parking, and sustainable drainage systems, along with hard and soft landscaping. Associated infrastructure works such as sewer systems, cable laying, and access roads are also part of the project. Formation Design & Build, a West London contractor with a focus on residential projects across the capital, has been appointed to finish the development. While the value of Formation’s contract has not been disclosed, the company has experience with large-scale residential and redevelopment projects in London, including a £100 million redevelopment of a refuse depot in Tottenham Hale.
Southern Housing, which merged with Optivo in late 2022, suffered financial setbacks due to the collapse. It has lodged a claim with Henley’s administrators, 360 Insolvency, for losses and damages amounting to £36 million related to Henley’s work on several projects, including two other South London developments in Thornton Heath and Tulse Hill. At the time of collapse, Henley owed £6.7 million to 221 suppliers and subcontractors, most of whom are unlikely to recover any of their owed funds, according to an April 2025 report from the administrators.
Planning documents underpinning the Cherry Orchard Road site show the proposed building is designed to meet contemporary residential needs with a variety of flat sizes and communal amenities, alongside sustainable infrastructure measures. However, the development faced delays extending beyond Henley’s collapse. Investment and planning complications, compounded by rising material and labour costs, had already slowed progress, with the project’s restart pushed to mid-2025. This context reflects wider challenges facing London’s housing sector, where ambitious development targets often collide with financial instability among contractors and supply chain disruptions.
Henley Construct’s sudden administration has had a pronounced impact not just on Southern Housing but on other housing associations in the region as well. Industry observers highlight the difficulties local authorities and housing providers face in delivering new homes on schedule, a problem exacerbated by contractor failures and market pressures. This illustrates the broader fragility within the residential construction sector, where the fallout from a single contractor’s collapse reverberates through multiple projects and stakeholders.
As Croydon and other parts of London continue to seek new residential developments, projects like Cherry Orchard Road underscore the importance of financial resilience and project continuity planning. The appointment of Formation Design & Build to complete the scheme offers a hopeful step toward realising the much-needed homes, but the episode remains a cautionary tale about the vulnerabilities in the housing construction ecosystem.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative is recent, dated 6 October 2025. The earliest known publication date of similar content is 24 September 2025, reporting on the £36 million loss due to Henley Construct’s collapse. ([insidecroydon.com](https://insidecroydon.com/2025/09/24/failures-of-building-firm-cost-housing-association-36m/?utm_source=openai)) The report includes updated data on the appointment of Formation Design & Build, justifying a higher freshness score. However, the earlier coverage indicates that the narrative may have been republished across multiple outlets, including low-quality sites. Additionally, the narrative is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The narrative does not recycle older material but provides new information on the project’s progress.
Quotes check
Score:
9
Notes:
No direct quotes are present in the narrative. The information is presented in a factual manner without attributed statements.
Source reliability
Score:
7
Notes:
The narrative originates from Construction News, a reputable UK-based publication. However, the report is based on a press release, which may indicate a reliance on a single source. The lack of direct quotes or attributions to other reputable sources raises some concerns about the diversity of information.
Plausability check
Score:
8
Notes:
The narrative presents plausible information regarding the appointment of Formation Design & Build to complete the stalled housing development in Croydon. The details align with known facts about Henley Construct’s administration and Southern Housing’s financial losses. The language and tone are consistent with industry reporting. No inconsistencies or suspicious elements were identified.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is recent and provides new information on the Croydon housing scheme, with no significant issues identified in freshness, quotes, source reliability, or plausibility.
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