Receive (if any)

The Sub-Committee noted the apology for absence of Councillor Laurance Garrard and Councillor Osman Dervish. +Councillor Christine Smith substituted for Councillor Garrard and Councillor Christine Vickery substituted for Councillor Dervish.

Members are invited to disclose any interests in any of the items on the agenda at this point of the meeting.  Members may still declare an interest in an item at any time prior to the consideration of the matter.

There was no interest disclosed at the meeting.

To approve as a correct record the minutes of the meeting of the Sub-Committee held on 4 November 2025 and authorise the Chairman to sign them

The minutes of the sub-committee meeting held on 4 November 2025 were agreed as a correct record and signed by the Chairman.

Report attached.

Exempt Appendices A, B, C and D to this Report are not available for public inspection as they contain or relate to exempt information within the meaning of Paragraph 3 of Schedule 12A to the Local Government Act 1972.

This report is in the exempt part of the agenda because it refers to information relating to the financial or business affairs of any particular person (including the authority holding that information) and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Sub-Committee received a presentation outlining the background and purpose of Mercury Land Holdings (MLH), its original objectives and the rationale for its operational model. Officers explained that MLH was established to deliver private rented sector (PRS) homes, generate financial returns, and support wider housing supply and regeneration objectives. The Sub-Committee was reminded that MLH is not a registered provider and therefore cannot directly hold or manage social rented homes. Officers highlighted that redirecting MLH toward social housing would be financially unviable, potentially prejudicial to Council finances and unnecessary given the existing Housing Revenue Account (HRA) provision.

The revised motion under consideration removes the requirement for MLH to focus on social housing and instead emphasises delivering affordable homes after the company reaches break even. Officers confirmed that, with this amendment, the motion becomes workable. They explained that each MLH scheme already undergoes an individual business case demonstrating tenure mix, viability and affordable housing levels, and that officers will continue to explore opportunities to increase affordable provision within the constraints of viability and MLH’s financial obligations.

Officers then presented detailed updates on MLH’s completed schemes, pipeline delivery, financial position, and projected trajectory towards financial self sustainability. The Sub-Committee discussed the threshold at which MLH will break even, noting that PRS units under management are forecast to reach around 239 by 2030, enabling self sufficiency. Questions were raised about sales performance, market confidence, affordable housing percentages, the ability to restrict sales to Havering residents, and the potential for MLH properties to support reductions in temporary accommodation costs. Officers confirmed that MLH does not sell directly to other local authorities and that market sales are essential for liquidity and debt repayment.

The Sub-Committee also considered questions submitted in advance relating to MLH loans, repayment schedules, funding requirements for the agreed development pipeline, tenure breakdown, and viability processes. Officers confirmed that the current MLH programme is fully funded within existing budgets and that viability assessments follow standard policy with Havering achieving an average of 15% affordable housing across major schemes. Members also discussed alternative delivery models used in other boroughs, with officers explaining that while options exist, each has limitations and must be assessed against Havering’s financial position, borrowing capacity and strategic aims.

Following discussion, the Sub-Committee voted not to call an extraordinary Council meeting. Members agreed for the MLH business plan to proceed to Cabinet. The following comments were made for the benefit of the Sub-Committee for future update to Members:

– MLH producing a benefits dashboard showing impacts on temporary accommodation, general fund pressures and HRA implications;

– MLH incorporating social value commitments aligned with Havering’s Social Value Strategy;

– Consideration of flexibility between market sale and PRS units where viable.

Officers also presented business plan updates for Bridge Close, Waterloo & Queen Street, Chippenham Road, Farnham & Hilldene, and Rainham Park. Each update covered progress over the last 12 months, planned activity for the coming year, key financial movements, viability considerations and major risks.

The Sub-Committee noted planning permissions obtained, land assembly progress,  ...  view the full minutes text for item 104.

Report attached.

Exempt Appendices A, B and C to this Report are not available for public inspection as they contain or relate to exempt information within the meaning of Paragraph 3 of Schedule 12A to the Local Government Act 1972.

This report is in the exempt part of the agenda because it refers to information relating to the financial or business affairs of any particular person (including the authority holding that information) and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Officers presented the business plan for the Rainham and Beam Park. The  update covered progress over the last 12 months, planned activity for the coming year, key financial movements, viability considerations and major risks.

The Sub-Committee noted the update and did not make any recommendations.

Report attached.

Notice of Key Cabinet Decision containing exempt information.

This Cabinet Report contains some appendices (A & B) which comprise exempt

information which is not available for public inspection as they contain or relate to exempt information within the meaning of paragraph 3 of Schedule 12A of the local Government Act 1972. They are exempt because they refer to confidential information and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Officers presented the Sub-Committee with an update report on the Havering Wates Regeneration  business plan. The update covered progress over the last 12 months, planned activity for the coming year, key financial movements, viability considerations and major risks.

The Sub-Committee noted the update and did not make any recommendations.

Report attached.

Appendices B and C and the Exempt Agenda Report are not available for public

inspection as they contain or relate to exempt information within the meaning of Paragraph 3 of Schedule 12A to the Local Government Act 1972.

It is in the exempt part of the agenda because it refers to information relating to the financial or business affairs of any particular person (including the authority holding that information) and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Sub-Committee received the Bridge Close, Waterloo & Queen Street business plan 2026/27. The update covered progress over the last 12 months, planned activity for the coming year, key financial movements, viability considerations and major risks.

The Sub-Committee noted the update and did not make any recommendations.

Report attached.

Appendix 5 to this report is exempt by virtue of paragraph 3 of the Access to

Information Procedure Rules set out in the Constitution pursuant to Schedule 12A Local Government Act 1972, as amended in that it contains information relating to the financial or business affairs of any particular person (including the authority holding that information). The public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Sub-Committee received a presentation on the business plan updates for the Housing Revenue Account. The update covered progress over the last 12 months, planned activity for the coming year, key financial movements, viability considerations and major risks.

The Sub-Committee noted the update and did not make any recommendations.