The Shareholder Committee meeting scheduled for 19 March 2026 was set to review the strategic position and financial performance of the council's Local Housing Companies. Key discussions were expected to focus on the half-year financial performance of Loddon Homes and Berry Brook Homes, their projected end-of-year positions for 2025/26, and the approved budgets for 2026/27. Updates on the conversion of Loddon Homes to a Community Benefit Society and the development pipeline were also on the agenda.

Managing Director Overview

The primary item for consideration was the Managing Director Overview, presented by Karen Howick, Managing Director of Local Housing Companies. This report was intended to provide the committee with an update on the strategic position of the Local Housing Companies, including key financial and operational performance matters for Quarter Two of 2025/26, and the forecast budget for FY2026/27. No formal approvals were sought, with the information provided for review and scrutiny.

The report highlighted several key achievements since September, including consent for Loddon Homes' largest development period, progress on its conversion to a Not For Profit entity, and the successful application for a £480,000 Homes England grant for a House of Multiple Occupancy.

Financial Performance: The report detailed the half-year financial performance and projected end-of-year positions for both Berry Brook Homes and Loddon Homes. Berry Brook Homes was forecast to break even for the financial year 2025/26, a significant improvement from an initial projected loss. Loddon Homes, however, was reflecting a planned loss of £128,000, largely due to the removal of four shared ownership acquisitions and onward sales. The report acknowledged this planned loss as a feature of the organisation's investment in growth and development.

Budget for FY2026/27: Approved budgets for FY2026/27 were presented for both Berry Brook Homes and Loddon Homes. Berry Brook Homes' budget projected a surplus of £15,966, with a positive EBITDA surplus of £155,746. Loddon Homes' budget forecast a loss of £133,324, though it maintained a positive EBITDA of £40,699. The report noted that Loddon Homes' budget was reflective of a delayed development pipeline.

Financial Return to the Council: During FY2026/27, Berry Brook and Loddon Homes were expected to generate £264,000 in financial return to the Council through paid services, management fees, and a 1% margin on borrowing. Additionally, the delivery of specialist housing options was anticipated to result in £297,000 in cost avoidance for the Council.

Changes to Operating Protocols: A significant point of discussion was the progress on the redesignation of Loddon Homes from a For Profit Registered Provider to a Not For Profit entity, beginning with its conversion to a Community Benefit Society. This change aims to better align with the organisation's corporate objective of increasing housing delivery within Wokingham Borough, particularly for those with lower incomes or specialist housing needs. The report outlined potential changes to governance and legal arrangements, including altered shareholder arrangements and updated inter-group agreements.

Operational Performance: Key Performance Indicators (KPIs) for both Berry Brook Homes and Loddon Homes were presented, indicating performance against tenant satisfaction measures and regulatory compliance. While both organisations were reportedly meeting targets in most core areas, an exception was noted for Repairs and Maintenance due to a lack of available data.

Development Pipeline: The report provided an update on the development pipeline, with Loddon Homes anticipating a busy Quarter 4 with the completion and occupation of two new acquisitions. Notable future developments for Loddon Homes included planned affordable homes in Twyford, Arborfield, Charvil, and South Wokingham. Berry Brook Homes was in the process of creating an appraisal model for the Private Rented Sector.

Public Questions and Councillor Questions

The agenda also allocated time for public questions, with a 30-minute period for questions submitted under notice. Additionally, 10 minutes were set aside for questions from Town and Parish Councils, and a further 20 minutes for Councillor questions submitted under notice. Any questions not addressed within the allotted time would receive a written reply.