Subscribe to trusted local news
In a time of both misinformation and too much information, quality journalism is more crucial than ever. By subscribing, you can help us get the story right.
- Subscription costs less than £1 a week with an annual plan.
Already a subscriber? Log in here.
26
Aug
Council housing company Brierley Homes reports £3.2 million loss
North Yorkshire Council's housing company reported a £3.2 million loss for the last financial year.
Brierley Homes, which was founded in 2017, is part of the Brierley Group of 12 companies owned by the council.
The company oversees housing developments across the county, including in the Harrogate district.
According to a report before the council’s shareholder committee next week, the firm posted a £3.2 million loss for the 2024/25 financial year.
The company had budgeted for a £200,000 profit for the year.
Kerry Metcalfe, assistant director of commercial, property and procurement at the authority, said the position was driven by delays in receipt of sales income, increases in the company’s financing costs and a move away from pure commercial housing delivery to the provision of affordable homes.
Ms Metcalfe said:
The delayed sales are caused by several factors including planning and legal issues, and a proportion of the reported loss represents a timing change to revenues rather than a reduction to underlying profitability across the full Brierley Homes development pipeline with sales, and therefore profits, which were due to be achieved in 24/25 now forecast for later years.
She added that the company will also shift from commercial schemes to affordable housing and the “progression of more difficult council owned sites to assist North Yorkshire Council in delivering affordable homes targets”.
The move comes amid concern among councillors over the additional financing of Brierley Homes.
Brierley Homes' Yew Tree Farm development at Marton-cum-Grafton.
Last month, the council 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 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.
However, senior councillors on the authority’s Conservative-run executive said the decision was the “right thing to do”.
The council also approved an extension to a maximum loan facility Brierley Homes to £25 million in April.
The loan facility was first introduced in March 2018 as a means of funding the firm to construct and sell homes.
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.
Five years later, the council made a decision to extend the facility to £25 million.
Meanwhile, Gary Fielding, corporate director for resources, confirmed at an executive meeting last week that a report will be put before senior councillors on September 16 which will "highlight some of the issues around managing cash flow" at the company.
0