Disrupted supply chains and soaring inflation have delayed the redevelopment of the historic Haggerston Baths building in Hackney, says developer Castleforge.
Planning permission has yet to be granted by the council despite an application being filed in November 2021, preventing Castleforge from breaking ground. This would only be possible once the construction costs had levelled off, it said. The price of construction materials rose by 17% in September compared to a year before.
“There is presently a lot of uncertainty in the construction market with disrupted supply chains and a fuel price shock contributing to a period of inflation and volatile tender prices,” Michael Kovacs, the founding partner of Castleforge, said. “This is undermining progress on developments around the country.”
The Grade II listed bathhouse closed in 2000 due to health and safety concerns. The council then selected Castleforge in 2017 to refurbish and redevelop Haggerston Baths. The project would transform the site into an area for community events and public use with a gym and café. The site’s maintenance and security costs now stand at around £100,000 every year, according to the council.
Kovacs said, however, that Castleforge remained optimistic that supply chain constraints and construction costs would soon level off, “enabling this much needed project to break ground”.
Hackney Council estimated that the cost of restoring Haggerston Baths would reach more than £20 million. Castleforge must cover the cost of the work and then pay the council rent for an annual lease.
