The spiralling cost of labour and materials is putting London’s cultural identity at risk, according to specialist development lender Regentsmead.

The Mayor of London recently called on property developers and local authorities not to dismiss culture and individuality when planning developments in London.

Boris Johnson’s demands came amidst fears that plans to address the housing shortage in London could result in artists and other creative talents to be squeezed out.

Boris said: “As London continues to grow and prosper, there is a critical need to build more homes for Londoners, but this should not be at the expense of our culture and distinctiveness, which are hugely important for our economy.

“There are good examples of developers and planners incorporating culture into their regeneration schemes, including Olympicopolis, London City Island, the City and Nine Elms.

“We want more of them to be talking to, even working with cultural bosses, artists and other creatives at the start of projects and recognise the value of culture, not just to our city's quality of life, but to the success of their developments.”

But James Bloom, Chief Executive at Regentsmead, told Development Finance Today that he thinks the cost of projects in London is making it difficult for developers.

He said: “London has a unique and diverse culture and this needs to be protected by future developments.

“We have a thriving tourist industry and the cultural side of London plays a big part in this, it is important that the rich cultural heritage is preserved and enhanced.

“But given the high labour and material costs in London, the bottom line profit is naturally a key consideration, and this would sometimes be at the expense of the cultural elements of design.”