Housing association the Peabody Trust has hit back at rumours that it is winding down its development activities
Director of development Dickon Robinson said it would be spending more than £30m on new schemes this year. He also pledged that the housing association, which is famous for the innovative Murray Grove and BedZED schemes, was still committed to off-site construction and sustainable development.

Speculation over Peabody's future workload follows 51 job cuts at the trust last year, and news of cost overruns on the BedZED scheme and the Raines Dairy project in north London. The trust confirmed to Building this week that the final account on the Raines Dairy scheme was £8.9m, £1.4m over the original budget.

Despite these setbacks, Robinson was bullish over Peabody's development prospects. He said: "We still have a significant new-build programme. Our capital programme this year is £65m, which is not peanuts. This includes the decent homes standard work as well as money on assets that will come to us thorough stock transfer. About 50% of that is new build."

Robinson pointed to progress being made on five major London schemes:

  • Ladbroke Grove, Kensington & Chelsea: Robinson said the trust was in discussions with the council to double the density of this scheme to 780 units. The CZWG-masterplanned project first received outline planning permission in 2001.

  • Blue Hut, Hackney: A £16.5m, 175-unit scheme designed Munkenbeck + Marshall that includes 78 microflats for key workers. Contractor Mansell is due to start on this site this month.

  • Barons Place, Southwark: An off-site manufactured key-worker housing scheme, developed with contractor and developer Spaceover, which has started on site.

  • King's Crescent: Peabody is hoping to reach a legal agreement with Hackney council to transfer the 400-house estate to the association next month. Peabody plans to more than double the estate to 880 units in eight years. Masterplanner West 8 has secured outline planning consent. Peabody, which is working with contractor United House, plans to offer 50% affordable housing.

  • Tower Hamlets: The trust is due to submit a planning application for this 25-storey, Patel Taylor-designed tower "in the next few months", according to Robinson.

    Robinson also dismissed rumours over his own future at Peabody, describing them as "unfounded, idle chit-chat".