The Shareholder Committee of Wokingham Borough Council met on Thursday 28 May 2026 to review the financial and operational performance of the council's local housing companies, Loddon Homes Limited and Berry Brook Homes Limited. Key discussions included the Q3 financial position, the progress of the 30-year financial plan, and the proposed transition of Loddon Homes to a Community Benefit Society.

Managing Director Overview

The committee received an overview of the performance of Loddon Homes Limited and Berry Brook Homes Limited for the third quarter of the 2025/26 financial year. Karen Howick, Managing Director of the Local Housing Companies, presented the report, highlighting that the staff team is now fully resourced.

The group's financial position had improved by approximately £110,000, largely due to the sale of land at Wellington Road Corner from Wokingham Housing Limited (WHL) to Wokingham Borough Council. This sale facilitated the delivery of an affordable housing scheme and has put WHL into a positive performance position for the financial year. Loddon Homes was expected to continue tracking against its approved half-year forecast, with a projected loss of £122,000 at the end of the financial year, though quarter three performance was as anticipated. Berry Brook Homes was optimistic about moving into a small profit-making position by the end of the financial year.

A significant item discussed was the rent reconciliation exercise, which addressed historical overpayments of rent from Wokingham Borough Council to the housing companies. This transaction had settled all outstanding balances, and audit activity had confirmed the accuracy of the figures. Revised processes have been implemented to prevent future recurrences of this error.

Key Performance Indicators (KPIs) for quarter three were noted as broadly positive. However, a lack of repairs data from the council's responsive repairs and maintenance contractor, Cardo, meant that this area of performance appeared skewed. Councillor Pauline Jorgensen, Leader of the Opposition, expressed concern about managing supplier performance without adequate data. Updates were provided on work with Cardo and the council to improve data availability and accuracy, with improved reporting expected from the first quarter of the 2026/27 financial year. Monthly contract management meetings are in place, and work is underway to ensure a smooth transition from previous contractors. Steps are also being taken within the local housing companies to intercept and address any missed repairs, and spot checks of completed jobs will be introduced to gauge customer satisfaction.

The committee also reviewed the draft corporate plan for 2026/27, noting its three strategic pillars: delivering quality homes and reliable services; building a community-focused, people-first culture; and strengthening foundations for long-term resilience. Further work on succession planning for board members was also highlighted.

Nigel Bailey provided an update on the developing 30-year financial plan, which is intended to support long-term business planning, scenario modelling, and risk assessment. The plan is based on current budgets, the asset management strategy, and the development programme, with a more comprehensive version expected in June. This approach will subsequently be extended to Berry Brook Homes.

Progress on the proposed transition of Loddon Homes to a Community Benefit Society (CBS) and ultimately a not-for-profit registered provider was noted. Legal and governance documentation is being progressed with council officers, with completion anticipated in July. The committee welcomed the potential benefits of this transition, including increased competitiveness in future development bidding processes.

The development pipeline was reported to be progressing well, with occupation commencing at Kingfisher Drive and delayed units in Binfield continuing to be addressed. Conceptual planning around the private rented sector is also underway in collaboration with the council. The committee discussed the potential implications of the Renters' Reform Act.

Looking ahead, the year-end financial position was on track, and the financial audit for 2025/26 had commenced. Key priorities for the coming period include the presentation of the 30-year financial plan, the CBS transition, the completion of six affordable homes in Binfield, continued development activity, and the progression of private rented sector proposals. The launch of the Loddon Homes and Berry Brook Homes websites was also noted.

The committee resolved to satisfy itself that the information presented provided necessary assurance regarding the effective management of the group of companies and was invited to raise any questions concerning the strategic positioning of the organisations against their objectives.

Declarations of Interest

Councillor Stephen Conway declared a Personal Interest in Item 60, the Managing Director Overview, as he is a Non-Executive Director of WBC Holdings Limited. Councillor Prue Bray also declared a Personal Interest in the same item for the same reason.