Wokingham borough council’s flagship housing development, the Carnival flats development on Wellington Road, is projected to make a loss of £1.3 million, according to information disclosed in last week’s full council meeting.
Conservative councillor Charles Margetts asked Liberal Democrat Stephen Conway, the executive councillor for housing, partnerships and the local plan, how many of the 55 flats have completed sales and what is the expected loss now to the taxpayer on this development?
Cllr Conway responded, saying: “The Carnival Place development is the last piece of a major construction works within the enormously successful and award-winning Wakingham
town centre regeneration project, which has delivered new and improved services
to our residents and supported the economic development of the town centre.
“But, as you know, this particular scheme has a rather long and complicated
history.
“Initiated under a previous administration and surviving unprecedented challenges
during its construction, including two contractors going into administration, the extreme impacts of the COVID pandemic on the construction industry, and the longer term impacts of Brexit.
“However, despite all these challenges, I’m delighted to say that the construction works have been completed.
“The units are on the market, and most importantly, we now have residents living in the development and being able to enjoy the quality of the building and its surroundings.
“To date, we have completed sales of 10 units with the further 12 reserved. We
continue to work with our selling agent to progress the rest of the sales, and we’re confident that this will be done in due course.
“The scheme’s projected loss still stands at the £1.3million that I reported at the council last November.
“As sales are completed and the final capital receipts are confirmed, then we will
update this projected figure to an actual figure which will be reported, but I should take this opportunity as I always do to clarify that the borrowing for this scheme as part of the wider town centre regeneration project is repaid through dedicated income streams – not through council tax streams, not through council tax receipts.”
