Havering Council's Property Firm Seeks Approval for 106 Flats with Zero Affordable Units
Havering Council has recommended approval for a controversial development in Romford that would see 106 new flats built with no affordable housing, despite projections showing the project could lose over £5 million. The strategic planning committee is set to vote on the proposal later this week.
Council-Owned Developer Proposes Car Park Replacement
The plans, submitted by Mercury Land Holdings (MLH) – a homebuilder fully owned and funded by Havering Council – call for demolishing a five-storey car park on Angel Way in Romford and constructing two new residential buildings in its place. The council-owned company operates independently despite its municipal backing.
Council officers have defended the proposal, arguing that the 106 new homes would help address housing demand in the borough. They noted that the loss of the 487-space car park would be mitigated by available on-street parking and surplus capacity in other town center facilities.
"Surveys revealed that only 24% of the Angel Way car park spaces were typically in use," a council report stated. "The loss of these spaces could be accommodated by existing provision within and around Romford Town Centre."
No Affordable Housing Despite Local Need
The development's most contentious aspect is its complete lack of affordable housing units – homes specifically designed for buyers who cannot afford market prices. Council documents acknowledge this as a "significant drawback" but argue it would not be reasonable to reject the application solely on this basis.
Financial viability assessments present a bleak picture for the project's profitability. Two separate reports from BNP Paribas and Turner Morum predict losses ranging from £1.1 million to £5.4 million, with variations based on fluctuating land values and construction costs.
"The council is adopting the values provided in the BNP Paribas report as the best reflection of site circumstances," an officer clarified in documentation.
Local Opposition and Political Criticism
During public consultation, 32 residents formally opposed the scheme, raising concerns about noise, high-density living, and parking shortages. Conservative councillor David Taylor, a member of the opposition, has vowed to object to the proposals.
"It loses money, it doesn't build what we need, and it doesn't follow the council's own rules about re-naturalising the River Rom," Taylor stated. "New housing in Romford should benefit Romford. This means building what we actually need, like family homes and social housing."
The councillor added pointedly: "Making a loss while building one-bed flats that we don't need makes very little sense."
Broader Development Context
The Angel Way proposal exists within a larger development framework for Romford. The Havering Local Plan, which guides borough development through 2031, earmarks the town center for approximately 6,000 new homes.
Council officers have emphasized that the car park site represents brownfield land – previously developed territory that should be prioritized over natural spaces. They also noted the existing structure has "little architectural merit."
The final decision rests with councillors, who will weigh the housing need against financial risks and community concerns. The outcome will test how local governments balance development ambitions with fiscal responsibility and social housing obligations.
