Milford Haven flat scheme under fire as unit cost tops £270,000

Pembrokeshire Herald

04-05-2025

£6.7m council project draws criticism amid questions over value for money
A £6.7 MILLION scheme to build 24 mostly one-bedroom flats for over-55s on Charles Street, Milford Haven, is facing mounting scrutiny — with each unit costing more than many three-bedroom houses in the area.
The development, led by Pembrokeshire County Council and earmarked for social housing, is being built on the former Motor World site. At an average of £270,000 per flat, critics say the price tag is out of step with both local property values and national building cost benchmarks.
Rising costs and delays
The project was first approved in 2020 with a plan for 15 flats. However, it stalled when the original contractor, WRW Construction, collapsed into administration in 2021. The scheme was later re-tendered and expanded to 24 units. In April 2025, the council awarded the new £6.7 million contract to W B Griffiths & Sons Ltd.
Each flat measures around 51 square metres. While ground-level parking is included, there are fewer spaces than units — meaning not all residents will have access to a bay.
'You could get a house for that'
Asking questions: Cllr Mike Stoddart
County councillor Mike Stoddart welcomed the long-delayed scheme finally moving forward, but raised serious concerns about its cost.
'I'm pleased that, after more than ten years of delays, this development is finally going ahead,' he told The Herald. 'But £270,000 per small flat is eye-watering — you could get a three-bedroom house for that. Persimmon Homes would build you one, including the land, roads, and a profit.'
A resident on nearby Hamilton Terrace added: 'My house was recently valued at £249,000. It's a large, property — far bigger than any of these flats.'
Part of the cost increase is linked to stricter building regulations introduced by the Welsh Government. Under the Welsh Development Quality Requirements 2021 (WDQR), all publicly funded housing must meet enhanced standards for energy efficiency, accessibility, and space. These include banning gas boilers, ensuring digital connectivity, and making homes adaptable for future needs — all of which add to construction costs. Audit Wales estimates these standards could increase build costs by around 13%. But taking this into account would still put the cost per unit at around £240,000 before the estimated cost of the project meeting the new Welsh Government standards for publicly funded housing developments.
The motorworld building being demolished in july 2018 (video: herald)
Benchmark costs tell a stark story
The average build cost for a three-bedroom house in Wales in 2024 is £276,478, with construction-only estimates ranging from £253,439 (low benchmark) to £299,518 (high benchmark).
By contrast, the Charles Street flats come in at approximately £5,300 per square metre — more than double the Welsh mid-benchmark of £2,513/m².
Property analyst Tom Rees and others have raised concerns over the failure to consider alternative solutions. More than 750 long-term empty homes sit unused in Pembrokeshire — many of which could potentially be refurbished for a fraction of the Charles Street cost.
Council defends project
Pembrokeshire County Council says the high cost reflects several factors:
Inflation in the construction sector
Complexities of building on a constrained brownfield site
Requirements to meet high environmental and energy standards
The council also cites urgent housing need: more than 8,000 people are currently on the county's housing waiting list, with an annual shortfall of 475 affordable homes.
While the need for more affordable housing is not in dispute, the cost of delivering it is. With unit prices outstripping local values and national averages, and with hundreds of empty homes lying idle across the county, questions are being asked about whether the Charles Street development offers value — or a costly lesson in council procurement.