Ealing Council's Overview & Scrutiny Committee reviewed the financial risks regarding the delivery of Broadway Living's affordable homes scheme.

In October 2013, the council established Broadway Living, a wholly-owned subsidiary, to provide and manage affordable housing in the area. 

Ealing council secured £108m grant from the Greater London Authority (GLA) for the 2021-2026 Affordable programme, £10m of which has been allocated to Broadway Living's homes scheme in 2018. 

Strategic Director of Economy and Sustainability, Peter George, presented the report to the committee yesterday (30 November) evening, saying that after Covid there has been "challenges" the council has faced. 

Mr George said: "A large proportionate of UK construction workers were EU nationals. When Brexit and the pandemic hit, a number (of workers) returned home to their native countries but didn't return back when the pandemic was over." 

Not only has the council confronted workforce challenges, but difficulties regarding the pricing of materials for the development. 

Mr George continued: "Steel at one point went up by 20%. What has happened since then (Covid), a number have levelled out but not come down (price). 

"The key determinant of viability between projects is the differential between construction costs and property values. What we have all experienced is costs going up, but property values being volatile." 

Ealing Council's Overview & Scrutiny Committee reviewed Broadway Living's plan to deliver genuinely affordable homes (credit: Ealing Council/ YouTube).

Adding to Mr George's presentation, Ealing Council Interim Housing Development Transformation Director, Ali Ozay said: "its an ambitious project. 

"There is a need to take care of how developments are carried out going forward." 

Mr Ozay suggested to the committee that Broadway Living could create temporary housing as an option to deliver affordable homes. 

He said: "The kinds of things which might be discussed is perhaps looking at Broadway Living to whether it could do more in the delivery of temporary accommodation, which I know is costing Ealing and other councils lots of money." 

"In terms of the Broadway Living RP, could we deliver different tenures in terms of shared ownership. All these options would need to be modelled. 

"I think everyone is trying to grapple with the same challenge of delivering as much (homes) as the council can in what is a difficult climate for developing local authorities." 

Broadway Living Ltd offers housing development and consultancy services while Broadway Living Registered Provider (BLRP) manages affordable housing. 

An artist illustration of homes Broadway Living intend to deliver in Perivale, Ealing next year (credit: Broadway Living).

Director of Housing Development, Philip Browne added: "We have over £100m of grant secured, but time is time. We need to start these projects by March 2026.  

"Although its 2023 in development terms if we haven't got planning approval in some of these projects then actually there is little time. 

"This work is timely because if this leads to a conclusion where we can progress projects with that grant allocation that would be a great benefit." 

There are currently 44 homes currently under management of Broadway Living and its sister company, Broadway Living RP has 61. 

Next phase of the affordable homes project coming in January which will show viable housing plans and unviable ones, with the unviable ones potentially being delivered in partnership with other companies. 

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