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.
21
Jan
Council approves £400,000 loan draw down to housing company
North Yorkshire Council has approved a £400,000 loan draw down to its own 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.
In a decision notice published this past week, the council said it had approved the financial support for the company to ensure it has “appropriate cashflow over the short term in line with demonstration of need”.
The £400,000 will be provided from a £27 million loan facility, which was approved by senior councillors in September 2025. It is not an additional loan.
The 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 £400k 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 drawn down will be paid back back at a commercial rate of interest.
Loans and cash flow
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.
Senior councillors on the authority’s Conservative-run executive said the decision was the “right thing to do”.
0