Half of the regeneration schemes in Havering Council’s flagship 12 Estates housebuilding programme are being reviewed due to a “sharp rise” in costs. 

The £1.2billion joint venture between the council and developer Wates Residential was launched by the previous Conservative administration in 2018 to build more than 3,900 new homes on council-owned land. 

Almost five years later, only two of the sites are nearing completion and the overall number of homes to be built has dropped to below 3,200. 

In an annual update on the joint venture last week (February 8), Havering’s cabinet heard that plans for six sites are under “further review” due to a “sharp rise” in the cost of borrowing and construction. 

Due to commercial confidentiality, cabinet sat in private as they approved more than £100million in funding for earlier schemes. 

However, it heard that five schemes planned for a later stage of the programme are likely to be delayed by “economic volatility”. 

A report added: “Costs have risen in response to a climate of high inflation and supply chain constraints, making the delivery of the sites in the later phases challenging.” 

The sites that are “on pause” would include more than 750 homes collectively at Maygreen Crescent and Dell Court in Hornchurch, Delderfield Court and Old Church Gardens in Romford, and Brunswick Court in Upminster. 

An over-55 retirement community, Royal Jubilee Court in Gidea Park, is under review but “may” be approved later this year. 

Cabinet approved a further £1.7m in funding for 197 “substantially complete” homes at New Green in Rainham and 175 retirement homes at Sunrise Avenue, Hornchurch, which are due for completion by the end of this year. 

Led by council leader Ray Morgon, it also approved £33m more in funding for Waterloo Estate and Queen Street, which will see 1,380 new mixed-tenure homes replace 270 demolished council homes. 

Cabinet also approved forward funding for two schemes in “phase two” of the programme in Harold Hill. 

This Is Local London: Leader of the council, Ray MorgonLeader of the council, Ray Morgon (Image: Havering Council)

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Chippenham Road Estate, which currently has 33 social rent and leasehold homes, will be replaced with 155 affordable or shared-ownership homes. 

Farnham and Hilldene has 117 flats, set to become 478 homes, which will be a mixture of affordable, shared-ownership and private market sales. 

One of the original 12 sites, Delta Estate in Gidea Park, was removed from the programme in early 2020 as it did not meet the council’s “regeneration objectives” or local residents’ “aspirations”.