The people in charge of Wokingham Borough Council have been criticised for breaking their own affordable housing rules.

With major housing developments, the Conservative-run council usually requires developers to ensure around 35 per cent of the new homes are affordable.

Social rented housing, shared ownership homes and homes offered at no more than 80 per cent of the average local market rent are all classed as affordable.

However, just 22 of the 214 homes that are being built as part of the council’s £113 million Wokingham town centre redevelopment will be affordable – that’s around 10 per cent.

At a meeting on March 18, Peter Humphrey said the council “excluded itself” from its affordable housing rule when it redeveloped the town centre.

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He added: “Would you please state how much affordable housing could be built per annum, with the £6 million per year profits and explain why this is not being done?”

Cllr Charlotte Haitham Taylor, executive member for regeneration, said: “The regeneration, which consists of three sites, has already provided 22 affordable key worker homes as part of the Peach Place phase.

“We haven’t included further homes as the community benefits of the regeneration are so much bigger than anything anyone who wasn’t the local authority would provide.

“The funds, that other private developers would be expected to use towards providing affordable homes, are being used to pay for all the non-profit making elements of the scheme.

“That’s things like the new park and destination play area, new pedestrianised spaces for events, public toilets and water fountains, a new road to help make the local network more resilient, and, when it opens next year a brand new leisure centre and library hub.

“Being able to reinvest these funds into the scheme has also helped offset the cost of making lettings decisions that have put the town and community before pure profit margins.

“That’s decisions like bringing a new cinema to the town or choosing to let to an independent boutique rather than generic high street clones who arguably would pay more, but contribute little towards creating a great future for the town.”

As part of the project, Peach Place has been redeveloped and a 95-bedroom hotel, a cinema and shops, cafes and restaurants have been built on Elms Field.

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Work on 214 homes and a new leisure centre and library on the old Carnival Pool & Fitness Centre site is well underway.

Both projects are due to be completed in the summer of 2022. Wokingham Borough Council says 90 per cent of the units in the new town centre are now being rented out by businesses and it expects to generate around £3.5 million of profit over the next three years.

The council plans to sell the 214 homes that are being built across the town centre for around £48 million.

It has taken out large loans to pay for the project and expects to be left with a town centre worth £114 million once those homes have been sold and an outstanding debt of £65 million.

The council says it could sell off the commercial properties for a profit of around £49 million but wants to continue renting them out so it can pay off the debt and then generate around £6 million a year in profit.