Wates lands £209m deal to regenerate Penrhys estate

Wates Construction is in line for a £209m contract to rebuild what was once Wales' largest public sector housing estate.

Housing association Trivallis has selected the contractor as its development partner for the regeneration of Penrhys in the Rhondda. The scheme plans around 800 to 900 homes, with an initial phase of around 121 homes.

The hillside estate opened in 1968 with 951 homes. Decades of demolition and resident relocation have since reduced it to around 200 homes spread across 24 hectares.

What does the masterplan propose?

The concept masterplan includes:

• A new village centre
• Around 1,000 sq m of commercial space
• Extensive public realm
• New and replacement affordable housing
• Green spaces, play areas and community facilities

The council is also planning a replacement primary school as part of the wider redevelopment.

How will the scheme be funded?

Trivallis intends to mix private sale, shared ownership and social rented homes throughout the development. More than half the homes are expected to be sold privately to help fund the overhaul, with replacement social housing provided for existing tenants.

Wates will work with Trivallis to design and deliver the scheme, invest in mixed-tenure housebuilding and manage the process from planning through to sales and aftercare.

What happens next?

The £209m award follows a three-stage procurement, with one tender assessed at the final stage. The proposed contract runs for 10 years, with scope for a five-year extension to accommodate unforeseen delays.

A contract will be signed from 20 October. Trivallis is targeting a start on building work in 2027.

The decade-long framework positions Wates to lead one of Wales' most significant estate rebuilds, returning Penrhys to a scale close to its original footprint while shifting its tenure mix decisively toward private sale.