Thursday, February 11, 2021

News: £1.2m cost increase for Council housing developments


Additional costs have been incurred by Rotherham Council as they attempt to kickstart housebuilding in Rotherham town centre.

National contractor Willmott Dixon is working on behalf of the Council to deliver 171 homes on authority land following the award of a £31.5m contract.

Now the Council is looking to find additional money amounting to over £1m due to implications of the flooding in November 2019, and the ongoing Covid 19 pandemic.

On the Millfold House site on Sheffield Road, a £10m project that will feature one apartment block and a number of back-to-back houses, the building has been demolished but council papers show that problems have been encountered.

The papers state: "The extreme flooding caused movement in the existing retaining wall at the rear of Millford House. This structural issue had to be rectified before any construction could productively take place. A provision has also been identified for additional covid 19 precautions that could be required as the construction work moves from an outdoor environment to an indoor environment. In identifying, resolving and replanning the project to account for these issues the spend profile has slipped."

An additional funding request has been made of £1.217m.

The request follows on from a landswap deal reported by Rothbiz last year to enable a larger development to take place on the site. Carried out at a £1 peppercorn, the overall additional costs in developing the site for six more apartments is £1m.

The Millfold Rise development will feature one apartment block consisting of 31 apartments and 14 back-to-back houses, which offer first floor garden terraces. The homes are due to be completed in Spring 2022.

The second scheme is the £13m Westgate Riverside development on the site of the former Sheffield Road baths which consists of two apartment blocks containing 44 homes and 28 two and three-storey semi-detached and terraced houses. The third development, on the site of the former Henley's garage on Wellgate, consists of two apartment blocks containing 34 homes and 20 two and three-storey terraced houses, with a value of £8.5m.

75% of the properties will be affordable homes with Council funding coming from its Housing Revenue Account. The Council has secured grant funding from Homes England Shared Ownership and Affordable Homes Programme and from Sheffield City Region Housing Capital Fund.

Images: RMBC / Bond Bryan


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