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13
Apr
Council extends loan facility for housing company to £25m
North Yorkshire Council has increased the loan facility for one of its own housing companies to £25 million.
Brierley Homes, which was founded in 2017 and oversees housing developments across the county including in Harrogate, was granted the rise last week.
The loan facility was introduced in March 2018 as a means of funding the firm to construct and sell homes.
The former North Yorkshire County Council introduced the facility with a maximum £25 million in funds to draw upon.
At the time, the loan was offered on commercial terms with the council charging interest on the balance at base rate plus 4% initially.
In February 2020, the company exercised its ability to draw upon the loan facility and was approved £22.9 million to construct and sell homes.
Now, five years later, the council has made a decision to extend the facility to £25 million.
In a decision notice, the authority said it had “become necessary” for the maximum loan amid delays in the firm’s construction process.
It said:
As at 31 March 2025, the principal loan with Brierley Homes Ltd stands at £22.493m.
Due to a number of construction delays and reprogramming of sales from the 24/25 financial year into the 25/26 financial year, it has become necessary for the maximum loan to be increased to the £25m limit agreed by executive to allow construction to continue in line with programme and to cover this time until sales income is received.
The Stray Ferret asked North Yorkshire Council which delays it was referring to and how much in interest the company was now paying back on the loan.
We also asked whether the council was confident that this is the right financial decision to help the company and, in return, the council itself.
Karl Battersby, corporate director for environment and chairman of Brierley Homes, said:
As with any house-building company, cashflow projection relies on sales completions which can experience some delays.
These completions form part of the company’s wider pipeline of productivity – from identifying sites to obtaining planning permission, designing and constructing houses, and then taking them to market.
This decision is in line with the Executive’s approval to grant a loan facility of up to £25 million in March 2018, and the council will continue to charge the usual market rate of interest.
The move comes as the Stray Ferret revealed last year that the council expected Brierley Homes to make £959,000 in the 2023/24 financial year but instead it lost £1.3 million. Read more here.
The financial outturn for the 2024/25 has yet to be published.
The company is part of the Brierley Group of 12 companies owned by the council.
It has built homes in locations including Woodfield Square in Harrogate, North Road in Ripon, The Paddocks in Great Ouseburn and Yew Tree Farm in Marton-cum-Grafton.
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