This article summarises the report pack provided to Newham Council's Officer Key Decision meeting. The report pack includes a proposal to accept grant funding for retrofit works at James Riley Point, and an update on the Carpenters Estate regeneration programme. It is important to note that this is only a summary of the report pack, and does not reflect any actual decisions made at the meeting.

Warm Homes: Social Housing Fund (WHSF) Wave 3 Grant for Retrofit Works at James Riley Point

The report pack included a recommendation for the Corporate Director of Resources, Conrad Hall, to approve the acceptance of £2.4 million in grant funding from the Department for Energy Security and Net Zero (DESNZ) via the Warm Homes: Social Housing Fund (WH:SHF) Wave 3. The funding would support retrofit and decarbonisation works at James Riley Point, a high-rise block on the Carpenters Estate.

The report pack noted that the conditions of the grant agreement require the council to match fund a minimum of £13.3 million, which would come from the existing £98.3 million budget for the refurbishment of James Riley Point, approved by the cabinet on 4 February 2025.

The grant and match funding would be used for:

• External Wall Insulation (EWI)
• New windows and doors
• Mechanical Ventilation with Heat Recovery (MVHR) systems
• Low-carbon heating solutions
• Smart heating controls
• Retrofit assessment and co-ordination
• Retrofit designer, co-ordinator and evaluator roles

The report pack stated that declining the grant would increase the council's borrowing costs.

Councillor Zulfiqar Ali, the Cabinet Member for Finance and Resources, and Environment, was consulted on this decision.

Carpenters Estate Restoration and Regeneration Scheme Update

The report pack also contained an update on the Carpenters Estate restoration and regeneration scheme¹, which was last reported to the cabinet in September 2023. The report pack noted that the outline masterplan application for the programme has been approved, setting out the vision to provide approximately 2,300 new homes, 50% of which will be social rent, alongside new community facilities, public space, and commercial space.

The report pack outlined proposed changes to the programme delivery strategy, including:

• Finalising a Section 106 agreement² for the Carpenters Estate.
• Approving an updated Vacant Possession Strategy for residential buybacks.
• Expanding the Lund Quarter phase from 385 to approximately 500 homes, with an increased fee budget.
• Allocating additional funds to the James Riley Point development due to forecast cost increases.
• Approving necessary budget adjustments and reprocurement of contractors.

The report pack stated that the council would need to borrow £320 million more than expected in September 2023 due to construction inflation and new building safety requirements. It also noted an increase in the proposed number of new homes to be developed.

Viability

The report pack included an updated viability model, reflecting the latest inputs from professional advisors. The results from the December 2024 model were summarised in a table, along with the September 2023 cabinet report model outputs:

Metric	September 2023 Cabinet report	December 2024 Model	Difference between December 2024 and September 2023
Proposed Total Homes	2,271	2,361	+90
Interest rate	5.5%	5.5%	-
Net Present Value (NPV)	£170m	£172m	+£2m
Internal Rate of Return (IRR)	6.7%	6.6%	-0.01%
Payback Period	41 years	44 years	+3 years
Peak Borrowing	£1,101m	£1,421m	+£320m
Year of Peak Debt	2040	2043	+ 3 years

The report pack stated that the increase in borrowing was due to rising costs driven by construction inflation and new building safety requirements.

Outline Application & Section 106

The outline masterplan draft Section 106 agreement details were included in the report pack. A total S106 contribution of £15.89 million has been assumed, including a 5% contingency. This is in addition to £15.9 million of Community Infrastructure Levy³ (CIL).

The report pack noted that due to a delay in issuing the draft Section 106 by the London Legacy Development Corporation (LLDC) in August 2024, the approval of the final Section 106 agreement and issuing of the decision notice has now been transferred to the London Borough of Newham (LBN) planning team for final determination.

Vacant Possession Strategy

The report pack included an updated Vacant Possession Strategy, which allocated £27 million towards acquisitions on the Carpenters Estate to deliver the masterplan. The changes included:

• Removal of the planned acquisition of phase 6, located on Hutchins and Gibbins Road.
• The re-prioritisation of housing on Biggerstaff Terrace, ensuring they are actively acquired as part of Phase 2.
• The re-prioritisation of Phase 5, Biggerstaff, ensuring flats within this phase are actively acquired to enable timely delivery of Phase 5.
• Passive acquisition of Phase 4, properties north of Wilmer Lee Close, negotiating only acquisitions when approached by owners on a first come first served basis and subject to funding.

Property Arrangements & Major Sites Negotiation Strategy

The report pack outlined a strategy that included details of:

• Terms for the surrender of the existing Carpenters and Docklands Community Centre Lease and grant of a new lease on the new community and leisure facilities when constructed.
• Terms to grant a management agreement with the Carpenters Primary School on the sports facilities which will be managed by the Carpenters and Docklands Charity.
• Grant of Meanwhile Leases & Licences under Officer delegated authority.
• An update regarding the current intentions of the Building Crafts College (BCC) and activities required to fully investigate the impact of these once confirmed by the BCC.

Phase 2 Lund Quarter Enhancement

The report pack stated that through optimisation and the completion of adjacent property purchases, there is potential for the Lund Quarter to be increased to around 500 homes. The additional homes added through the Enhanced Scheme will include 50% affordable homes and 50% PRS to maintain the overall 50/50 tenure balance of the masterplan.

Phase 3 Station Quarter Delivery Strategy

The report pack outlined a revised strategy to realign the delivery of phase 3 such that the plot known as Railway North, which comprises two residential towers and doesn't require any vacant possession (VP) to start is delivered first followed by the Tower plot when VP is achieved by completion of JRP.

The report pack also stated that Populo propose exploring alternative delivery strategies for the Dennison plot to ensure successful delivery of the plot.

James Riley Point (JRP) Phase 1, JRP - Budget Increase

The report pack noted that the proposed March 2023 budget was based on vacant possession and a start on site in April 2023. Due to the need for a Compulsory Purchase Order (CPO), the project is now not expected to start until the spring (with a revised approach to doing enabling works before VP is achieved) this would be a delay of 24 months.

The report pack included a table setting out the cost increases, by residential and non-residential elements, along with the estimated grant, providing an estimated additional cost to the Council of £0.4 million.

	March 2023 (SOS Q4 2023)	December 2024 (SOS Q4 2026)	Increase
Residential	55.0	72.4	17.4
Non residential	23.1	25.9	2.8
Total Development	78.1	98.3	20.2
Estimated Grant (SHDF & GLA)	12.0	31.8	19.8
Additional Cost to the Council	66.1	66.5	0.4

JRP – Approval of Applications for Funding

The report pack stated that an application has been made for funding under Wave 3 of the Social Housing Decarbonisation Fund initiative for £2.4 million.

JRP Approval of Revised Enabling Works Scope

The report pack noted that on this approach works can be carried out with the remaining leaseholder in situ through isolating this floor of the build with an exclusion zone.

4.63 JRP Approval of Pre-construction Budget & Construction Budget

The report pack stated that to achieve the most efficient delivery of the project it is being proposed to simplify and consolidate the different budgets that make up the £98.3 million into two budgets, 'pre- construction' and 'construction'.