Although it is now apparent that this project is unlikely to be as profitable as Berkeley Homes originally forecast, (not least because the flats were always well over-priced) I really can't believe they would just abandon this project and write off the cost - it would surely be a massive loss for them. The housing market will recover at some point, and Forest Hill may get an earlier recovery than most areas because of the East London Line extension.

Surely it is more likely that if Berkeley are having second thoughts then they will either try to sell the project onto another developer or they will seal off the site, make it waterproof and simply wait until the market recovers before re-commencing work. This latter option is what a builder told me is happening on a lot of these development sites now.