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The Next Phase Of Canary Wharf Had To Be Started Before The End Of 1992, ...

The next phase of Canary Wharf had to be started before the end of 1992, despite the low occupancy rates of Docklands developments at the time (Ambrose 1991: 18).
Consequences for Local Inhabitants
A 1995 report suggested that 99% of first-time buyers in Tower Hamlets who had bought houses in the last quarter of 1988 had negative equity (Foster 1999: 204-5). Nevertheless, this had some benefit for local homeless households, as some of those owners let their properties through the Borough councils' private sector leasing schemes (Kleinman 1999: 14).
Brownill notes that homelessness has tripled and local unemployment levels remain at twice the London average (1990: 3). Although this might be attributed to a broader national trend, two factors can be seen as contributory. Firstly, investment in social housing might have been brought about had there been taxes on investors, and had there been stricter enforcement of schemes to provide affordable housing for locals: Foster documents discrepancies and exploitation of loopholes in the schemes (1999: 74-75).
Secondly, although the LDDC initially stipulated that a certain percentage of homes costing under £40,000 to buy should be built, questions were raised over the effectiveness and management of these schemes (Kleinman 1999: 6). Once the investment ‘bubble' burst, neither approach was viable due to the fall in private investment, and it is questionable as to what level of investment would have been attracted to Docklands without the EZ incentives.
Ratcliffe and Stubbs suggest that with the collapse of the 80s property boom, the LDDC has pursued a much more conciliatory role towards local community groups (1996: 161), although this is more likely to be due to a change of leadership at LDDC, with Michael Honey appointed the new Chief Executive: he quickly announced a £50m investment for community projects, necessarily from public rather than private funding.
Development from 1992
Real estate
After the collapse of Olympia and York in 1992, the Canary Wharf development, the symbol of Docklands regeneration, was purchased by a consortium in 1995 which included Paul Reichmann of Olympia and York, and development continued. Commencement of work on the Jubilee Line extension, delayed by Olympia and York's collapse, helped inspire investor confidence in the area. The Citigroup and HSBC towers adjacent to the ‘Canary Wharf Tower' (1 Canada Square) were completed in 2001.
The working population of Canary Wharf increased from 7,000 in 1993 to 55,000 at the end of 2002 (www.canarywharf.com/mainFrm1.asp?strSelectedArea=History). A downturn in the market around 2003 did not have the impact of the downturn in the late 80s and early 90s, with investors remaining confident regarding medium- to long-term prospects (Anon 2003).

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