Key Points
- Property developer Southern Grove has officially appointed Boom Construction as the main contractor for its purpose-built student accommodation (PBSA) project in Tower Hamlets, east London.
- The scheme will deliver a 110-bed development aimed at meeting the rising demand for student housing in the capital.
- Southern Grove confirmed that both parties successfully “worked through” initial cost pressures to finalize and negotiate the delivery terms.
- The formal agreement allows construction activities to proceed on site following extensive planning and commercial negotiations.
East London (East London Times) August 21, 2026 –Property developer Southern Grove has formally appointed Boom Construction to deliver its purpose-built student accommodation scheme in the London Borough of Tower Hamlets. The agreement marks a critical progression for the development, which is designed to provide 110 student beds in east London. Both firms reached commercial alignment after resolving initial development and procurement cost challenges, allowing the project to transition into its construction phase.
What details were agreed between Southern Grove and Boom Construction?
Under the negotiated terms, Boom Construction will oversee the main build contract for the 110-bed PBSA scheme.
Southern Grove disclosed that commercial discussions involved overcoming cost issues associated with material prices and macroeconomic conditions before agreeing on a final contract structure. By resolving these financial viability parameters, the development team has secured the necessary operational pathways to start on-site works in the east London borough.
How will the 110-bed scheme impact Tower Hamlets?
The development focuses on increasing the localized supply of student beds within Tower Hamlets, an area experiencing sustained demand due to its proximity to several major higher education institutions.
The project aims to relieve pressure on the surrounding private rented sector by offering managed, purpose-built living spaces specifically formatted for university students.
What is the background of this development?
Demand for purpose-built student accommodation across Greater London has consistently outpaced supply over recent years. Inflationary pressures, interest rate adjustments, and elevated material costs across the UK construction sector have frequently delayed procurement processes for residential schemes.
Southern Grove’s resolution of cost terms with Boom Construction reflects broader industry efforts to manage tight development margins while progressing needed infrastructure projects.
What is the prediction for local students and the housing market?
The progression of this 110-bed scheme is projected to directly benefit the regional student population by expanding available housing choices in east London ahead of upcoming academic intakes. For the local community in Tower Hamlets, the addition of dedicated student beds helps reduce competition for standard domestic rental properties, offering modest relief to the broader private housing market in the borough.
