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Council re-approves £14.3m contract for Haverfordia House redevelopment after costs rise

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Delays, inflation and expired contractor pricing blamed as scheme timetable slips to 2027

PEMBROKESHIRE COUNTY COUNCIL has re-approved a £14.3m construction contract for the redevelopment of the former Haverfordia House site in Haverfordwest, after delays led to increased costs and a later completion date.

The scheme will deliver 26 affordable flats, a 12-bed reablement facility, and communal spaces on the prominent town-centre site, replacing the former council office building which was demolished several years ago.

Cabinet members agreed in November to award the revised contract to C Wynne and Sons Ltd, after officers warned that further delays could result in additional inflationary pressures and place Welsh Government funding at risk.

The decision was taken in private session due to commercial sensitivity and did not feature in public Cabinet headlines at the time. Full details of the revised contract value and cost increases only became clear after further examination of Cabinet papers released following a Freedom of Information response received today (Jan 9).

Earlier approval no longer sufficient

The project was first approved by Cabinet in June 2025, with a further decision in July 2025 allowing council match-funding for the reablement element. At that time, the approved construction contract stood at £13.56m.

However, confirmation of key Welsh Government funding was not received until October 2025, by which point the period during which the contractor had held its original price offer had expired. During the same period, the main contractor was also required to appoint a new groundworks subcontractor.

Council officers told Cabinet that these factors, combined with construction inflation, resulted in a revised maximum contract sum of £14,306,279, an increase of around £746,000 on the previously approved figure.

Funding secured — but warnings issued

The overall development cost of the scheme is £17.53m, which the council says remains within its approved capital programme.

Funding includes Social Housing Grant, Housing with Care Fund, and Integrated Care Fund support from Welsh Government, alongside contributions from the council’s Housing Revenue Account and corporate capital budgets.

Officers warned that declining or delaying the award could place more than £9m of external grant funding at risk, while also increasing costs linked to site management, professional fees, and ongoing pressure on housing and social care services.

Scheme expanded to include extra flat

Since earlier approvals, the design has been amended to increase the number of flats from 25 to 26. A bedsit on the second floor has been reconfigured to meet Welsh Development Quality Requirements, creating an additional fully compliant unit and increasing future rental income.

The council said the change would strengthen the scheme’s long-term viability while adding to Pembrokeshire’s affordable housing stock.

Long-planned development

The redevelopment plans were first publicly outlined in February 2022, when Cllr Michelle Bateman, then Pembrokeshire County Council’s cabinet member for housing, described the project as a significant opportunity for both housing and health services.

At the time, Cllr Bateman said the proposals would provide accommodation not only for people seeking a new home, but also for those recovering from hospital treatment who were not yet ready to return to independent living.

“This remains a hugely positive phase of development for the council,” she said. “The Haverfordia project is particularly exciting as it is a fantastic collaboration between the Housing and Social Services departments of Pembrokeshire County Council.

“Pembrokeshire fully deserves to have a resource such as this and so many people will benefit — not just those seeking a new home, but those who are recovering from a medical procedure and not quite able to return immediately to their own homes, while also helping to prevent unnecessary hospital admissions.”

She added that local residents were encouraged to engage with the planning process, with the council keen to consider the views of anyone with an interest in the development or who might be affected during the construction phase.

Completion pushed back

Construction is now expected to begin in January 2026, with completion forecast for September 2027, six months later than originally planned.

Council officers cautioned that any further delays could result in additional cost increases due to inflation, while also prolonging pressure on hospital capacity, social care services, and the county’s housing register.

Legal and financial officers confirmed that the revised contract value was lawful, affordable, and did not breach procurement rules, as the contractor had been appointed through a two-stage process.

Cabinet approved the revised contract unanimously.

Business

Pembrokeshire Llawhaden care home at holiday lets approved

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A PREVIOUSLY refused call to change holiday accommodation near a Pembrokeshire village which was not meeting the criteria to avoid the second homes council tax premium, to a residential care home, has now been allowed.

In an application to Pembrokeshire County Council, Ian Parker sought permission for a change of use of The Sycamores, Gelli Hill, Llawhaden, on the site of a former farm complex, from an eight-bedroom holiday let capable of supporting 16 guests, to a residential care home of six residents and 10 staff.

A previous application was refused by county planners in 2024 on the basis it had failed “to provide justification in order to support an identified need for a residential care home at this location”.

A supporting statement, through agent H.B. Tribe Chartered Engineer, said its previous use as a holiday let was available for 140 days and actually let for 70 days in any one year, below the-now 182-day level to avoid incurring a second homes council tax premium.

“Recent local press reports indicate that a number of providers of holiday accommodation have left the industry as they cannot meet this target and, if they continue, are therefore liable for a huge increase in taxation, putting up the rate for holiday makers who are unlikely to pay the additional sums. Demand will therefore fall.

“In 2023 The Sycamores did not meet this new threshold and therefore faced the increased cost of having to pay council tax, (with the premium as a second home) so hard business decisions had to be taken. The property cannot continue as a holiday let.”

It said the applicants, together with a third director, own and operate three care homes in Pembrokeshire and Ceredigion specialising in the care of adults with learning disabilities, employing some 95 staff as the clients require 24-hour care and some need one-to-one supervision at all times.

It concluded: “It is known that nationally the care system is struggling to meet the increasing demands that are being asked of it. This is no less true for those with learning disabilities as any other group of the population. Evidence has been submitted to show that there is a demand for further residential and respite care spaces in West Wales.

“The application property exists and will remain as it is. There is no new visual impact on the countryside.”

An officer report recommending approval for the latest application said: “The applicant in addressing the previous refusal of planning permission has provided information to demonstrate that there is substantial demand for the provision of new residential care beds from within Pembrokeshire, Carmarthenshire and Ceredigion.

“It is considered that the building is appropriate for the proposed use, given its current use as holiday accommodation.”

It also said concerns about potential increases in foul water drainage were already met by the potential capacity of the existing tourist accommodation.

The application was conditionally approved.

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Business

Vandalised former Chinese restaurant bedsits scheme approval expected

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PLANS to convert a vandalised former Pembrokeshire town centre Chinese restaurant to a flat and bedsits are expected to be approved next week.

In an application recommended for approval the January 13 meeting of Pembrokeshire County Council’s planning committee, Mr S Sahin and Miss S Ahmed, through agent Hayston Developments & Planning Ltd, seek permission for a change of use of Grade-II-listed 20 Hamilton Terrace, Milford Haven from the former Mandarin Restaurant to one flat and eight bedsits, an amendment of an original scheme which included one extra bedsit.

The scheme is before committee rather than delegated to officers as it is recommended for approval despite being contrary to a policy of the development plan.

The application for the Mandarin follows a withdrawn scheme for three flats deemed invalid by council planners.

A supporting statement says: “The property has historically been in use as a Chinese restaurant on the ground floor with two flats on the upper floors of the building. The ground floor use of the building ceased some 10 years ago and currently lies vacant. Due to the lack of use of the building, it is in a very poor condition and has been the subject of unfortunate vandalism particularly to the interior of the building.”

It says that, after the previous scheme was withdrawn, the applicants have “since reviewed their position and now present revised applications to be considered by the council”.

It adds: “The clients have re-thought on what type of accommodation is needed and required in this part of Milford Haven.  It has been identified that the cheaper type of affordable housing for either workers or a single person is the most needed. Indeed, PCC Housing Need Register reflects this need, and this has also been confirmed by the local estate agents.”

It concludes: “The proposal is considered to put an important Grade-II-Listed Building back into beneficial use and would help to secure its long-term future. The proposal would represent a high-quality and sympathetic conversion and extension of the building, and which would make a positive contribution to the locality and conservation area status.”

An officer report recommending approval says one letter of objection was received raising concerns including potential impact on a neighbouring property and boundaries, and the discharge of the sewer under number 20.

It concludes: “The proposal is for the change of use of use with alterations and extensions to the building to create one self-contained flat and eight bedsits.  This would not accord [with policy] as it would involve the change of use of the ground floor to residential (C3) use in a Secondary Frontage.

“However, material planning considerations have been identified which are considered to be sufficient to justify a departure from the policy.”

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Business

Major Pembrokeshire farm development back before planners after ‘cooling off’ period

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A PREVIOUSLY backed call against officer recommendations for the relocation of a Pembrokeshire farm diversification scheme which packages and distributes specialist medical equipment across Europe will again be considered by councillors.

At the December meeting of Pembrokeshire County council’s planning committee, members backed a call by Mr Van Der Spoel for the relocation and expansion of an existing farm diversification business into an existing agricultural building at Castle Villa, Hayscastle despite an officer recommendation for refusal.

Back in July a similar application by Mr Van Der Spoel, through agent Harries Planning Design Management, was refused by planning officers.

A supporting statement for that application said the Dutch-born applicant, together with his wife and adult daughter ran the farm diversification business packing specialist medical supplies at their 135-acre sheep farm.

It added: “The business run from this site is FRIO ASTRID EURO Ltd, which has a franchise agreement with FRIO UK. This business has been run from Castle Villa since its incorporation in 1998. The business was initially run from the stable building on the farmyard at Castle Villa.

“The business set-up involves receiving stock from FRIO UK in Wolfscastle, packaging orders and distributing the stock to seven Western Europe countries.”

Wolfscastle-based FRIO produces the world’s first patented insulin cooling wallet which keeps insulin and other temperature-sensitive medicines cool and safe.

The scheme for the business, said to have outgrown its current site, was previously refused by county planners on grounds including a lack of “robust evidence” to prove it couldn’t be sited within a nearby settlement or an allocated employment site, such as Haverfordwest.

Since then, an application seeking to address the reasons for refusal was submitted, and, at the request of local member Cllr Mark Carter, a call for the scheme to be decided by full planning committee rather than delegated to officers was backed at the October meeting of Pembrokeshire County Council’s planning delegation panel.

The latest application is again, after its ‘minded to’ backing at the December meeting, recommended for refusal on similar grounds to previously at the January 13 planning meeting.

It has returned to the January committee for ratification after a ‘cooling off’ period, and, if backed then, will ultimately be decided by full council.

A report for members following the ‘minded to’ approval, warns: “Members should be aware that if they are ‘minded to’ approve the application on the basis of economic benefits and farm diversification, this is a consideration which can be applied to many other existing sites. This would have further consequences for the implementation of policies within the LDP and its delivery.”

It adds that, if it is backed again, it includes a condition, suggested by the agent, that: “Should the farm and business ever be operating by different individuals/companies, the use of this building by FRIO ASTRID must cease and be relocated should further planning permission not be obtained.

“This will be regulated by the submission of documents annually to demonstrate the farm and business remain under ownership by the same individual/company.”

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