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 draft corporate plan for 2026/27, the 30-year business plan, and the proposed conversion of Loddon Homes to a Community Benefit Society.

Managing Director's Overview

Karen Howick, Managing Director of the Local Housing Companies, presented an overview of the Q3 financial and operational performance for Loddon Homes Limited and Berry Brook Homes Limited. The group's financial position had improved by £110,000, largely due to the sale of land at Wellington Road Corner from Wokingham Housing Limited (WHL) to Wokingham Borough Council. WHL is now in a positive performance position at the end of the financial year 25/26. Loddon Homes was expected to record a loss of £122,000, while Berrybrook Homes was maintaining a break-even position, with optimism for a small profit by year-end. Kajal Patel, Head of Finance, will now attend these meetings for deeper financial dives.

A reconciliation report confirmed that a repayment to the council for historical overpaid rent had been settled, with both Loddon and Berrybrook Homes, and the council's rent collection sides, confident in the accuracy of the amount repaid. Processes have been put in place to prevent future duplication of this error.

Key Performance Indicators (KPIs) for Q3 were broadly positive, although repairs data was missing, skewing the performance presentation. Work is underway with Cardo, the responsive repairs and maintenance contractor, to ensure data is provided. A joint piece of work with the council will verify KPI data in early 2026/27. Councillor Pauline Jorgensen raised concerns about managing a supplier without adequate data and understanding customer feedback, but was assured that customer satisfaction measures would be available once collected, with initial data expected for the Q1 26/27 presentation. The contract with Cardo has been operating since Q2 of the previous financial year, with a six to twelve-month improvement programme in place.

Draft Corporate Plan 2026/27

The draft corporate plan for 2026/27 was presented, having already been approved by Loddon and Berrybrook Homes. It focuses on three strategic pillars: continued delivery of high-quality homes and embedding reliable services; building a community-focused, people-first culture; and strengthening foundations for long-term resilience. The plan also incorporates succession planning for board members.

30-Year Business Plan

Nigel Bailey, Managing Director of Homes, discussed the 30-year financial plan, which underpins the corporate plan and provides medium to long-term financial projections for Loddon Homes. This living document will allow for scenario and risk planning and will be presented annually. The final version is expected in June, with Berrybrook Homes' plan to follow. The plan aims for complementarity, not competition, between the housing companies and the council.

Community Benefit Society Conversion

The conversion of Loddon Homes to a Community Benefit Society (CBS) and ultimately a not-for-profit organisation was progressing well. This move is intended to make Loddon Homes more competitive, particularly in new developments, by offering tax benefits and reducing stamp duty. Devonshire's are working on the necessary documentation in consultation with the head of legal. The new government framework will meet CBS requirements and ensure the council's role as a parent company is clear, with oversight from the council's 151 officer. The conversion is anticipated to be completed in July. Councillor Prue Bray noted the significant benefits of this move, with no significant dis-benefits identified.

Development Pipeline

Karen Howick provided an update on the development pipeline. While no significant new approvals were noted, all previously approved developments were progressing. Six young people had moved into a House of Multiple Occupancy (HMO) at Kingfisher Drive, which has been successful. However, units in Binfield have been delayed due to fire compartmentation and land registry issues, but are expected to be completed in Q1 or Q2 of the next financial year. Conceptual planning for private rental sector (PRS) housing is underway for Berrybrook Homes.

Councillor Stephen Conway highlighted the success of the Kingfisher Drive HMO, noting its sensitive renovation and positive impact on residents. He also praised the contribution of the housing companies to specialist accommodation and general use housing, with Loddon Homes having 81 houses in the pipeline, plus potential shared ownership schemes. Councillor Prue Bray emphasised the importance of a balanced portfolio, combining general lease properties with specialist accommodation.

The potential for Berrybrook Homes to intervene in the private rental sector was discussed as a way to address the housing affordability crisis by making less expensive private rental housing available. This could reduce pressure on affordable housing options. Nigel Bailey added that this intervention would also aim to set and enhance standards within the private rented sector in Wokingham. Councillor Jorgensen inquired about the impact of the new Renters Reform Act on these plans, with assurances that the phased introduction of the Act would be managed, and that Berrybrook Homes would work with council colleagues to mitigate any impact and explore opportunities to support landlords looking to exit the market.

Forward Outlook

Looking ahead to Q4 and the 2026/27 financial year, the presentation of the 30-year financial plan and the conversion to a Community Benefit Society were highlighted as positive steps. Strategic priorities include the handover of affordable homes in Binfield, entering into contracts for new S106 homes, finalising the 30-year financial plan, progressing PRS opportunities, and coordinating with the council to determine borough housing priorities. The launch of new websites for Loddon Homes and Berrybrook Homes and the commencement of the financial audit for 25/26 are also planned. Councillor Conway thanked Kajal Patel and her team for their work on the finances, noting the improved clarity and order.