An unrelenting focus on collaboration ensured that The Mill development in Cardiff, which involved the creation of 800 homes, was recently completed after seven years onsite. Successful projects of this scale aren’t achieved by accident, as David Ward, CEO of Tirion Homes, the not-for-profit residential developer behind the scheme, outlined to Construction Industry News when we caught up with him.
“Throughout the development we adhered to the principles we set in place at the very beginning of the project, with a particular emphasis on collaborative working, and this ensured it was a great success,” explains David. “We’re just finishing off the external work now, but essentially all the units are built and have either been sold or let, as per the original proposal. It was slightly behind programme, for various reasons, but for such a lengthy and complex scheme, this was to be expected.”
Including 442 Tirion homes for rent, which are managed by Cadwyn Housing Association (Cadarn), and 358 homes for open market sale by Lovell, The Mill scheme is a mixture of one, two, three and four-bed properties. It went ahead through a partnership with Welsh Government and Lovell, and financial backing from the Principality Building Society and M&G Investments Ltd.
“Each of our partners played a crucial role in helping this project prosper, from conception right the way through to completion,” adds David. “We were able to deliver the 400 affordable units across the estate without the need for Social Housing Grant, which is pretty much unheard of. This was a fantastic achievement all-round and a real vindication of the approach we took.
“Following the finalisation of the main scheme, a small part of the site is continuing to be developed in partnership with Cadwyn Housing Association. This involves the creation of 49 units for social rent for older people.”
The fact that the original 800 units could have been sold or let several times over because demand has been so high, underlines the success of The Mill development, as does the overwhelmingly positive feedback. What’s more, the project has already attracted industry recognition in the shape of a Chartered Institute of Housing Cymru Welsh Housing Award, where it triumphed in the ‘Developing High Quality Homes’ category.
“To receive award success was brilliant but it’s more important that The Mill met its commercial targets and delivered for residents with a new community now firmly established. We took a ‘tenure blind’ approach to the development, so all the units, whether they were for open market sale or rent, were built to the same design and specification. This ensured a consistently high level of quality across the board, as well as helping to foster a tremendous sense of community between residents, regardless of whether they own their homes or rent, evidenced by our community events, which continue to be well attended by both owners and tenants.”
Despite its undoubted success, The Mill development wasn’t without its hurdles, particularly as it began in 2017, meaning that it had to tackle the various issues relating to the Covid pandemic halfway through the build programme. However, the site was fully operational within just six weeks following the initial introduction of restrictions adhering to the changes that had been made to labour and working practices.
“Lovell must take great credit in facing the challenges of the pandemic, ensuring work continued onsite in a well organised and safe manner, as quickly as possible, which gave great confidence to the sub-contractor supply chain.”
The biggest challenge Tirion Homes had to contend with was related to the spiraling price of construction, due to the geo-political impact on the global supply chain. This made keeping control of the cost of development increasingly challenging, especially as higher interest rates meant financing became more difficult. However, the innovative approach to financing helped underpin the ongoing success of the project, as David highlights: “Our long-term investment strategy developed with M&G provided highly efficient financing over 50 years. This, plus support from Welsh Government and flexible construction finance from PBS, helped us to manage our way through. Again, collaboration was key, and we’ve been particularly effective in maintaining strong relationships with all our partners including Lovell, who managed to maintain robust supply chains throughout the build.”
The partnership with Lovell proved so fruitful that Tirion Homes was keen to keep the relationship going on another of its large projects, Royal Victoria Court, which involves the creation of 528 homes in Newport. Lovell has been continuing its role as both contractor and house builder since the scheme commenced in early 2022, with completion due around May/June of next year.
“The construction on Royal Victoria Court is going very well, but it’s not just about getting the homes built, it’s also about helping our partners achieve commercial success. Having the existing relationship with Lovell has therefore been highly advantageous. The Mill was its fastest selling development in the UK and Royal Victoria Court is already showing the same strong sales performance. Again, 50 per cent of the homes are affordable housing, with a local Registered Social Landlord, Melin Homes, acquiring some units for Low Cost Home Ownership in addition to the affordable rent.
Tirion has established a new Housing Management Company to manage the rented homes at RVC and is working closely with Newport City Council to ensure the scheme is both a success and makes a major contribution to meeting local housing need. This enables Tirion to offer a seamless range of services to partners from development management right through construction, financing and long-term management.
“We’ve also been keen to do our bit regarding sustainability and are working with our energy partners, such as SNRG and Kensa Heat Pumps, to reduce the burden of providing Net Zero solutions and improve the commerciality of some of those technologies.
“The role of the Welsh Government has once again proven vital, as it provided a guarantee for the financing of the Royal Victoria Court development. This meant we could get onsite and build the whole scheme in a single phase. This resulted in a very fast, accelerated build that delivered units much more quickly than we did with The Mill.
“Having an innovative approach to financing will be crucial if we’re going to collectively achieve the volumes of homes that the country so desperately needs. For the Government to meet its ambitious house building targets, it really needs to engage with the institutional market, such as the pension funds and the major insurers, because that’s where the bulk of the money will come from to meet these aspirations. Tapping into that potential investment is going to be vital going forward.”
In addition to the financial issue, David is also conscious of the challenge regarding the skills required in the wider marketplace to physically get properties built.
“We all know that there’s significant issues around the capacity of the construction sector itself and the availability of skills. It is not something that can be rectified quickly. It’s about committing to a pipeline of large projects, and then supporting the private sector’s ability to invest. Having certainty around the work for the next 10, 15 or 20 years is therefore going to be essential for everyone, as it will provide the reassurance required to underpin the investment.”
Large regeneration projects are never without their problems, particularly as brownfield land has its own difficulties to deal with, while financing in the current climate can also be contentious. It is therefore to the credit of Tirion Homes and its partners that The Mill development was completed so successfully and to such a high standard. This should give it every confidence that its current schemes, such as Royal Victoria Court, and those planned for the future, will be every bit as rewarding.
From homelessness to hope: A veteran’s journey to stability with Tirion Homes
Former Royal Welsh Guard, 52-year old Gavin was homeless for eight months in 2023, following the breakdown of a relationship. Despite being employed, he was living out of the back of his truck through the winter months and all he wanted was somewhere to call home.
However, despite being classed as homeless, he was not a priority placement, so his local authority were not able to support him or find appropriate accommodation. This highlights the issue faced by veterans, who need housing after leaving the armed forces and the lack of properties available.
Gavin served for more than a decade in the Royal Regiment of Wales, joining in 1988 as a 16-year old. He experienced several tours in various countries, suffering a head injury due to a vehicle IED. However, despite returning to active duty following his injury, he suffered with mental health issues and left the armed forces of his own accord in 2000.
Through the collaboration between Tirion Homes and the Welsh Veteran Partnership (WVP), which helps veterans to relocate, with their families, to a new home, Gavin was first introduced to Tirion Homes and its properties.
In February 2024, Gavin applied for a property at Royal Victoria Court in Newport and was supported by Tirion Homes’ neighbourhood manager, who was able to provide guidance and help, so that he could have stability and security.
He said of the experience, “I haven’t been able to sit on a sofa for eight months and Tirion Homes has been the making of my new life. It has been a breath of fresh air. My flat has become the epicentre of who I am, I know who I am. I finally feel safe and secure, I can’t remember being this happy.”
In 2016, Gavin was diagnosed with PTSD and adult ADHD, which has had a massive impact on his mental health, but now he feels comfortable with sharing his story. Following a 20-year career in the NHS, which came to an end due to the pandemic, Gavin has started a new career path working in film and TV production, as part of the camera crew; he recently worked on the Gavin and Stacey Christmas special and Sky’s Gangs of London.
He says that none of it would be possible without Tirion Homes believing in him and providing him with a home where he can truly belong.