Woking Council applies to government for 拢58m funding to complete reduced number of homes

Woking Council is applying for nearly 拢58m in government funding to allow the completion of 363 homes, forming part a regeneration project halted due to the local authority鈥檚 financial troubles.

The housing scheme, designed by Belfast-based White Ink Architects, is being built by Gilbert-Ash.

The rest of the Sheerwater project, originally masterplanned by BDP, was intended to deliver 1,142 homes, will now not go ahead, under a new plan set to go before councillors later today (Thursday).

Sheerwater-Birdseye

How the original Sheerwater scheme was expected to look

The authority, which in the summer issued a section 114 鈥榖ankruptcy鈥� notice, is also considering forward selling the homes and land in the three phases under construction,  with the exception of 106 existing properties which will be refurbished.

The Sheerwater regeneration project had been set to deliver 1,142 new homes over a nine-year phase of development.  But it now looks set to deliver just 363 homes in three phases.

The development agreement between the council and ThamesWey, the developer of the 拢492m regeneration scheme, ended in July this year when the council issued a section 114 notice due to financial pressures. The council鈥檚 debt portfolio is 拢1.8 bn.

A section 114 notice is seen as demonstrating a council faces bankruptcy unless action is taken. It restricts a council to only funding statutory services, meaning the council could no longer borrow to invest in the project to the same extent.

This means the council is now seeking additional funding to complete the three phases already under construction by ThamesWey.  

Avison Young, the consultant hired earlier this year to assess potential options for the Sheerwater regeneration, has also recommended that the council forward sell all homes at the site, apart from the 106 existing homes, as a single lot or in parcels.

It said many of the 106 existing homes are in poor repair as they have been empty for some time. The estimated cost of repairing these homes is 拢2.9m and it is thought that the capital receipts from disposal of land and homes will be used to pay for the works.

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The construction work, which started in 2019, has so far delivered a 拢26m community facility and 106 homes.

Councillor Will Forster, deputy leader of Woking Borough Council and portfolio holder for Sheerwater, said: 鈥淲e have put forward a robust case to government to draw down funding from the Public Works Loan Board that was previously agreed by this council. It wouldn鈥檛 be good for the community and it wouldn鈥檛 be value for money for the taxpayer if we don鈥檛 complete the three phases already started. In total we are asking the government for 拢57.7 million to finish these phases and conclude the council鈥檚 involvement with the scheme.鈥�