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11
Mar
Council approves further £300,000 loan draw down to Brierley Homes
North Yorkshire Council has approved a loan draw down of £300,000 for its loss-making housing company.
Brierley Homes, which was founded in 2017, is part of the Brierley Group of 12 companies owned by the council.
It oversees housing developments across the county, including in the Harrogate district.
The council said in a decision notice published on Monday (March 9) that the financial support had been made to ensure the company has “appropriate cash flow over the short term”.
The £300,000 will be provided from a £27 million loan facility, which was approved by senior councillors in September 2025. It is not an additional loan.
It comes after the council also approved a £400,000 loan draw down for the company in January.
Brierley Homes scheme in Woodfield in Harrogate.
The latest decision was made by Gary Fielding, corporate director for resources, in consultation with Cllr Carl Les, leader of the council, Cllr Gareth Dadd, deputy leader of the council, and Richard Flinton, chief executive.
A notice explaining the decision said:
Further loan draw down from the existing facility of £300,000 is required in order to allow the company time for sales to be received and therefore this loan draw down will ensure Brierley Homes can make all payments due in the event of some delayed sales.
The council said the loan will be paid back back at a commercial rate of interest.
The move comes as Brierley Homes, which reported a £3.2 million loss last year, has come under scrutiny from councillors over its reliance on council loans.
In September last year, senior councillors backed a proposal to increase a £25 million council loan facility to £27 million to provide Brierley Homes with further financial headroom.
Mr Fielding said at the September meeting that he would receive weekly cashflow reports from the company as part of “additional due diligence”.
He said the weekly reports would “ensure there is stronger due diligence” into the firm.
Meanwhile, in July 2025, the council also granted a £1.4 million loan to the housing company to assist it with cashflow while it delivered affordable housing and to "allow the company time for sales to be received”.
The council said the loan, which is separate to the loan facility, will be repaid with base rate interest instead of on commercial terms.
But, the move was criticised by Cllr Kevin Foster, leader of the Green and Independents group on North Yorkshire Council, who questioned how the council could justify further money for the company.
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