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Feb 2022
Harrogate council housing company Bracewell Homes won’t pay any dividends this year
Harrogate Borough Council has insisted its housing company is performing well despite it not paying any dividends this year.
Bracewell Homes launched two years ago with the aims of turning the council a profit and intervening in Harrogate’s pricey property market to deliver much-needed rental and shared ownership homes at affordable prices.
Its developments are Horsa Way, Dishforth and The Willows on Whinney Lane in Harrogate.
It was set up with the backing of a £10 million loan from taxpayers and the council had budgeted to receive £267,000 in dividends this financial year.
However, the council has now said it won’t receive any of this money in a revelation which sparked questions over whether Bracewell Homes is underperforming.
Speaking at a meeting on Monday, Cllr Pat Marsh, leader of the opposition Liberal Democrat group, questioned if the dividend shortfall was being addressed as she said the company should be a benefit to the council and not a “drain” on its finances.
'Extremely profitable'
But Paul Foster, head of finance at the council, responded to say the company was still “extremely profitable” and that it had continued to sell properties, although at a smaller percentage of shares than expected.
He said:
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According to documents filed with Companies House, Bracewell Homes had £459,565 in the bank as of March 2021.
Mr Foster also told Monday’s meeting that the council does not only benefit from the company through dividends, but also through cash coming from other areas.
He said:
40 properties by 2024
Since it was set up Bracewell Homes has so far acquired 26 homes and sold 22, which means it is on target to meet its initial aim of delivering 40 properties by 2024.
But with house prices continuing to soar and around 1,700 households on the council’s housing waiting list, there have been calls for the company to set much higher ambitions.
Cllr Marsh previously told the Local Democracy Reporting Service that the company should be aiming to deliver “hundreds” of homes to ensure low-income earners can afford to live in Harrogate where average house prices paid rose to £395,526 in 2021.
Cllr Marsh previously said:
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