‘Abnormal costs’ edge Stoke housing development over £3m mark

Building costs on a delayed housing scheme in Stoke-on-Trent are set to rise by around £600,000, the city council says.

City councillors are poised to increase the budget for construction of 14 homes on Wesley Street in Tunstall, on a vacant plot last occupied by a 1960’s-era sheltered housing development known as Lily Gertrude Simister Court, which was demolished in 2023.

The scheme was originally put forward two years ago with a budget of around £2.4m, and planning permission was approved in December last year.

But a report set to be discussed at a cabinet meeting on Tuesday (11 August) says “abnormal costs” and inflation have led to estimates rising by around 25%.

Around £300,000 of the increase relates to external works identified in development of the scheme, such as retaining structures, cut and fill, drainage and acoustic glazing requirements.

If approved, an extra £615,500 will be allocated to the council’s Housing Revenue Account capital budget to cover the added costs of the proposals, with an unnamed contractor waiting in the wings to deliver the scheme following a decision this week.

But the authority says an “updated and reprofiled” finance package means council borrowing required to finance the project has reduced slightly, down to around £1m. The scheme has been part funded by Homes England’s Social and Affordable Housing programme.

Work on the development could begin in January 2027.

Cllr Duncan Walker, cabinet member for safe and resilient communities and housing at Stoke-on-Trent City Council, said: “This scheme represents an important investment in affordable housing and the continued regeneration of Tunstall.

“By bringing a vacant brownfield site back into use, we will create 14 modern, energy-efficient homes that are designed to meet residents’ needs now and into the future.”

Pozzoni provided designs for the scheme, with planning consultancy provided by Hive Land and Planning. The project team also included Wardell Armstrong, HD Surveying, Arcadis, C2C, Synergy Environmental Solutions, Evolution Ecology Ltd, and DTA.

Documents and plans relating to the original proposals can be found on Stoke-on-Trent’s planning portal using reference: 25/FUL/00294