A redevelopment project in Radlett has gone over budget – but the opportunity to use a government grant means Hertsmere Borough Council has “come out on top” despite the overspend, according to its Labour leader Jeremy Newmark.
The council had previously approved a £3.28m budget for a redevelopment scheme at John’s Church on Gills Hill Lane, building three two-bedroom flats and three three-bedroom houses.
At a cabinet meeting last Wednesday (9 July), however, councillors noted the project had gone £324,000 over budget.
But the council has been able to use ringfenced money from the government to offer four of the homes as affordable housing, according to the government definition of the term, reducing the amount of money that was set to be paid for the scheme out of the council’s Section 106 funds.
Developers pay Section 106 money to contribute towards local infrastructure costs.
Matthew Bunyon, head of finance at Hertsmere Borough Council, said: “One of the reasons we changed the tenure of the properties to affordable was because we received the opportunity for LAHF funding – Local Authority Housing Fund.
“We’ve been able to utilise that funding to part-fund the whole development and, as a result of that, the level of Section 106 funds that we’d initially committed to this development will reduce.
“While there was an overspend in terms of the overall cost … actually we’ve recovered more through the LAHF funding.”
He added that the Section 106 money can now be used for “other affordable developments”.
Alan Matthews, the Liberal Democrat cabinet member for housing, said it was “very welcome” that the council “can secure more affordable housing out of the project, and temporary accommodation as well”.
One of the houses included in the project has been kept by the council as temporary accommodation to reduce the amount of private sector bed and breakfast accommodation it has to use in meeting its housing duties.
In response to a question from Conservative councillor Caroline Clapper, Cllr Newmark said the homes at the site were now “fully occupied”.
Councillors approved £118,000 of additional funding, which will cover consultants’ fees related to “change in tenure and the impact of the LAHF funding”, including redoing drawings, planning permission and procurement.
The redevelopment scheme was completed in August 2024 and also included a new church hall and nursery facilities.
Covering Hertfordshire’s district and borough councils.
