Agenda item

To receive an annual update on the Council’s Housing Investment programme.

The Service Delivery Manager: Housing Investment Programme provided a presentation updating Committee on the Housing Investment Programme since the previous report which came to Scrutiny in June 2025. Members noted that the report contained information on progress against planned and pipeline developments, outturn financial performance for 2025/26, customer satisfaction and tenancy management performance, and social value outcomes.

The Committee heard that recent changes to legislation placed new responsibilities and requirements on the housing investment programme. It was noted that the Building Safety Act 2022 had introduced additional requirements for Nuplace and development partners in relation to building safety. The Renters Rights Act 2025 was also highlighted as a significant reform of the private rented sector, strengthening tenant rights and increasing landlord responsibilities. The Head of Service: Housing Investment praised the Housing Investment Team for their work in adapting to these changes successfully.

Members also noted that interest rates, while down from 2023 levels, still posed a challenge with projections expecting interest rates to rise, putting pressure on future viability appraisals and operational costs. It was added that construction costs and private rents had increased while house prices remained relatively stable.

The Committee noted that Nuplace's housing portfolio comprised of 759 homes across 17 sites, with a further 37 homes under construction, bringing the total portfolio to 796 homes. Members were informed that 75 affordable homes were available at discounted rents and that the programme had also facilitated the delivery of a further 399 affordable dwellings through housing association partners. Approximately 2,000 residents were living in Nuplace homes.

Members heard that the programme continued to prioritise the delivery of low-carbon homes incorporating high levels of thermal insulation, solar PV panels, air source heat pumps and electric vehicle charging facilities. The programme also maintained a focus on delivering accessible and adaptable homes to support older residents and those with demonstrated needs to live independently. The redevelopment of 47.94 acres of brownfield land, alongside the refurbishment of 4,656 square metres of redundant floorspace, addressed stalled development sites and brought redundant and underutilised land back into use. Nuplace’s updated Business Plan, approved by Cabinet in February 2026, included pipeline schemes with the potential to deliver a further 300 homes.

The Committee received updates on completed and ongoing developments, demonstrating diversification and the delivery of wider social value benefits. Projects were delivered in partnership with a range of organisations and included both new-build developments and the conversion of existing properties into affordable homes. The Head of Service: Housing Investment provided examples of the transformation of redundant and underutilised buildings into high-quality residential accommodation, safeguarding historic assets while meeting local housing needs. The redevelopment of The Gower in St George's, was highlighted as a significant transformation project which involved the conversion of a Victorian school building, into a community centre, Parish Council offices and new  homes.

The Committee also received an update on Demark House development within Station Quarter, which has delivered high-quality fully furnished apartments with enhanced amenity provision. The development was recognised as creating a new market within the borough and remained under development. In addition, a range of projects across the borough's towns were highlighted, including the conversion, refurbishment and redevelopment of derelict buildings.

The Committee also noted pipeline schemes including the collaboration with Housing Plus Group (HPG) on the former Phoenix Site in Dawley and a business case which was in development for the Brandon Avenue site in Shawbirch and Station Quarter Plot 1.

The Head of Service: Housing Investment informed the Committee that annual satisfaction surveys and feedback data showed that 91% of tenants would recommend Nuplace to family and friends, while 82% were satisfied or very satisfied with both the repairs and maintenance service and their Property Management Officer.

The Committee noted that operational capacity had increased within the Tenancy and Property Management Teams. System improvements had also been implemented to support the growing and ageing housing portfolio. Governance arrangements remained strong, with strategic oversight provided by the Board and delegated responsibilities supporting financial sustainability and compliance.

The Committee heard that the social value outcomes delivered through the programme had included support for 58 apprentices and trainees, 36 work experience placements, 119 hours of school and college engagement activity, and 363 hours of employment support. Members also heard that 24 new and retained jobs had been created. Over £79,000 had been invested in community engagement projects, charities and local initiatives. Economically, £29.3 million had been spent through local supply chains, with 75% of expenditure retained within the local economy. 98% of construction waste had also been diverted from landfill.

The Head of Service: Housing Investment provided details of the 2025/26 year-end financial position. Void levels were reported at 2.18%, below the modelling assumption of 3.0%. Annual turnover totalled £6.2 million, generating a profit before interest and taxation of £4.2 million. Profit after interest was reported at £588,000. A dividend of £327,600 had been returned to support Telford & Wrekin Council frontline services. Members were also advised that the housing portfolio had been valued at £135.9 million against total investment of £102.18 million, representing capital growth of £33.72 million.

During the discussion, the Head of Service for Housing Investment reported that, despite the successful delivery of a number of schemes, several projects had encountered challenges, including construction cost overruns. Costs had been absorbed by Nuplace. The Committee also noted that market conditions were anticipated to result in further upward pressure on interest rates.

Members were advised that interest in renting apartments at Denmark House, Station Quarter had been strong, with a high level of applications received. It was reported that the scheme was projected to reach full occupancy by November 2026. The Committee was informed that the application process included affordability checks, which could extend the timescales for completing lettings.

The Committee sought further information on the 75 affordable homes illustrated during the presentation. The Head of Service: Housing Investment informed committee that affordable housing provision was delivered at approximately 80% of market rent and formed part of the requirements secured through Section 106 agreements. It was explained that Nuplace sought to maximise the delivery of affordable housing by working with partner organisations. It was added that recent developments had delivered between 40% and 45% affordable housing.

The Committee welcomed the development of 1 and 5 bed properties recognising the increase demand for 1 bedroom and large family accommodation across the borough. Members were also satisfied to see a portion of profits being returned to support Telford & Wrekin Council frontline services.

The Committee welcomed the update and noted the continued success of the programme.