Council paid £35 million six months ago to housebuilder now in administration
Eastbourne Borough Council paid Boutique Modern, the building company which has reportedly gone into administration, £35 million six months ago, according to council data.
The Newhaven-based firm was due to build 100 affordable homes on the landmark Bedfordwell Pumping Station site near the railway line.
Preparatory work had started at the site. This has now apparently halted; the gates to the site are padlocked.
A spreadsheet on the council website's Open Data page (above), show that £35 million was paid to Boutique Modern under the description of “Contractor main scheme contract for B Road”.
The Eastbourne Reporter has asked the council to confirm if this information, for the first quarter of 2025 / 26, relates to the Bedfordwell site. No response has been received to two requests.
The council said in a press release in July that it had secured Government grants of more than £9.8 million for the scheme. These comprised a £7.62 million Affordable Homes Grant and £2.2 million from the Brownfield Land Release Fund.
The Eastbourne Reporter has approached Cllr Peter Diplock, Cabinet member for housing and council deputy leader, to discuss the matter. Again, there has been no response.
Boutique Modern has also stopped work on two sites in Lancing, West Sussex, for Adur District Council where 16 homes were nearing completion.
The Eastbourne Reporter has also approached Boutique Modern but has yet to receive a response.
Eastbourne Borough Council said in a statement yesterday: "We have been informed that Boutique Modern has filed for administration.
"We remain absolutely committed to the development of this important local site.
"We are working with our partners to ensure there will be no impact on the delivery of over 100 much needed new homes for our residents. Accordingly, we remain confident that Bedfordwell Road will become a landmark development in the long and proud history of affordable housing in Eastbourne."
Boutique Modern describes itself as a modular manufacturer specialising in supplying local authorities and housing associations. Homes are built in the factory and assembled on site.
The Bedfordwell development includes 80 affordable rent properties comprising two and three-bedroom houses and one and two-bedroom flats.
Eastbourne Borough Council said in a press release earlier this year: "The Grade II-listed pump house, a familiar sight for train passengers near Eastbourne Railway Station, will also be sensitively renovated to accommodate 20 shared ownership flats and a commercial unit."
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