Major housing project cost rises by £1m

The issue with the water supply was "not originally anticipated"

A council says the cost of a major housing project has risen by almost £1m after an issue with the mains water supply.

The development will see 763 homes built on land at Top Wighay Farm near Hucknall, Nottinghamshire.

The county council has now said the water supply would have to come from 1.5km (1 mile) away in order to satisfy the "technical requirements" of utilities provider Severn Trent Water.

A new report says the issue was "not originally anticipated" and work to resolve it will cost the council £997,754.

The local authority has a legal obligation to provide the supply under the terms of a development agreement signed with housing developers Vistry in August 2023.

It is anticipated the land sale could raise around £40m for the council, which documents say would be "the largest deal ever for the council in terms of value."

The new council HQ on the site has not been affected

The documents add that failure to deliver the obligation on water supply, however, would "seriously jeopardise" the deal.

Cabinet member for economic development, Keith Girling, said while the situation was "disappointing", the council would have agreed to the deal even if it had known about the required works at the beginning.

"We asked them [Severn Trent] what would be required," he added.

"They told us what would be required, and it wasn't what they now want. They brought that late to the table", he said.

"In the scheme of things, a million pounds to get £39 million isn't bad. I'd take that deal every day."

A Severn Trent spokesperson said: “We understand that this is a major development in the area, which means it requires the right water connection.

"Our recommendation on what’s required to connect the development hasn’t changed, and we would be happy to discuss any concerns further.”

The site is also home to the council's new headquarters, Oak House, which is already under construction.

Girling said its water supply was already in place, however, and the council hoped to hold its first meeting at the new base in March.

Funding for the water supply works for the housing development is due to be discussed by the council's cabinet on Thursday.