The Place Overview & Scrutiny Sub Committee met on Tuesday 27 January 2026 to scrutinise the business plans of Mercury Land Holdings (MLH) and three regeneration projects: Bridge Close, the 12 Estates regeneration, and Rainham & Beam Park. The committee voted against holding an extraordinary full council meeting to discuss the MLH business plan, opting instead to allow it to proceed to Cabinet. The committee also made recommendations for MLH to produce a benefits dashboard and to amend its business plan to include an objective for delivering social value.

Mercury Land Holdings Business Plan

The committee scrutinised the business plan for Mercury Land Holdings (MLH), a wholly-owned subsidiary of the council established in 2015 to deliver housing for private rent and sale. The discussion was prompted by a previous council motion calling for MLH to focus on social housing and reduce temporary accommodation costs. Officers presented information indicating that a shift to social housing would be financially ruinous for MLH, as it is not a registered provider and would lose access to affordable housing grants. The current MLH business plan is structured around Private Rented Sector (PRS) housing, which provides a financial return to the council.

An updated motion, which the committee considered, focuses on delivering affordable housing after MLH reaches its break-even point. Officers believe this revised motion is deliverable and realistic. The committee heard that MLH has completed four schemes, providing 143 PRS units, 10 market sales, 18 shared ownership sales, and 52 affordable rental units. The current pipeline is forecast to increase PRS/PSL homes under management to 239. MLH is currently in an investment phase, with a request for an additional £900,000 in working capital. The council has invested £64 million in MLH, with net lending returns of £7.5 million in the last financial year. The break-even point for MLH is projected to be reached when it has 250 PRS units, anticipated around 2030-2032.

The committee discussed the financial position of MLH, noting total loans of £38.4 million against an asset base of £64.3 million. Concerns were raised about the timeline to profitability, with the break-even point not expected until 2032. The committee also explored the role of MLH in delivering affordable housing, with 117 affordable units identified in the current pipeline, including family-sized accommodation. Questions were raised about the determination of affordable housing percentages, with the local plan policy requiring 35% (or 50% on public land), subject to viability. The committee heard that MLH, like other developers, engages in viability assessments with the Local Planning Authority.

The committee voted against calling an extraordinary full council meeting to discuss the MLH business plan, allowing it to proceed to Cabinet. Two recommendations were made:

1. MLH to produce a benefits dashboard outlining its impact on temporary accommodation cost avoidance and general fund/HRA savings.
2. MLH to amend its business plan to include an objective of delivering social value in line with Havering's social value strategy.

Bridge Close Regeneration

The committee reviewed the business plan for the Bridge Close regeneration project, which aims to deliver over a thousand new homes alongside significant infrastructure improvements. Key progress in the last 12 months includes planning approval for a hybrid application, reaffirmation of Department for Education grant funding for the primary school, and continued design development. Land assembly has also progressed, with a Compulsory Purchase Order (CPO) agreed for the London Ambulance Service (LAS) site.

Over the next 12 months, the focus will be on finalising Section 73 agreements for planning, confirming primary school funding, crystallising health provision, and continuing land assembly discussions with the Islamic Cultural Centre (HIC) and LAS. Financial data shows movements between the February 2025 budget and the current plan, with adjustments made for the acquisition of a smaller portion of the LAS site by CPO. Key risks identified include scheme viability, the ESCO provider, and site assembly, with mitigation measures in place. The recommendations include approving the business plan, agreeing budget provision, and delegating authority for business case arrangements and legal agreements.

12 Estates Regeneration

The committee received an update on the 12 Estates regeneration programme, covering progress on Park Rise, Waterloo Queen Street, Chippenham Road, and Farnham Hill Dean. At Park Rise, sales have been completed on 17 units, with nine under offer, and a new sales agent appointed. For Waterloo Queen Street, planning permission has been secured for modular units, and a Section 73 application is being concluded to enable a start on site by March. Chippenham Road has seen planning permission secured and phase one demolition works completed, with GLA funding secured. Farnham Hill Dean has also received planning approval for phase one, with decanting of residential and commercial occupiers in progress.

Looking ahead, the focus for the next 12 months includes monitoring sales performance at Park Rise, with contingency plans being discussed. For Waterloo Queen Street, modular units are expected from February, with a start on site anticipated by March, subject to GLA grant discussions. Chippenham Road will see continued work on outstanding property interests, with a meaningful start on phase one planned by the end of March. Farnham Hill Dean aims to conclude Section 106 agreements and finalise GLA grant discussions. Financial data shows movements between the last business plan and the current one, with later phases of Waterloo Queen Street now excluded. Risks include unsold units at Park Rise, potential repayment of GLA grant, and site assembly for Chippenham Road. Recommendations include approving the business plan, delegating authority for agreements, and noting updated viability assessments.

Rainham & Beam Park

The committee reviewed the business plan for Rainham & Beam Park, noting the dominant aspect of its relationship with the new Beam Park station. The council acquired Notting Hill's interest in 2024, securing 29 interests across 20 sites. A managing agent has been appointed, and efforts are underway to enhance commercial income as a meanwhile benefit. Early opportunities for modular housing solutions are being explored, with a business case anticipated within the next 12 months. Nine residential units acquired have been refurbished, with eight now occupied, demonstrating cost avoidance.

The next 12 months will focus on the Beam Park station, with responsibility now with the GLA. A positive announcement from the Mayor of London is anticipated in Q1 2026, which is expected to act as a catalyst for the regeneration programme. The NR0203 site is also a focus for a potential business case for comprehensive development. Financial data shows the council has invested £19.1 million, with £2.8 million attributed to design and planning activities. Risks include scheme viability and impairment. Recommendations include noting the current status, approving the management and placemaking strategies, and authorising officers to take necessary actions to implement recommendations.

The committee also noted the HRA Business Plan without further questions.

The meeting concluded with the committee making recommendations to Cabinet regarding the MLH business plan, including the production of a benefits dashboard and the inclusion of a social value objective. The committee also recommended that future business plans be presented at an earlier stage to allow for more thorough scrutiny.