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06
May
Brierley Homes in fresh row over £113,000 planning breach at Kirkby Malzeard
Loss-making council housebuilder Brierley Homes has breached planning rules by failing to make a £113,000 payment towards community facilities in Kirkby Malzeard, it has been claimed.
Brierley Homes was established in 2017 to make money to fund council services.
But it reported a loss of £3.2 million in 2024/25 and is currently propped up by a £27 million taxpayer loan.
The 33-home Laverton Oaks site in Kirkby Malzeard is among its current developments.
Councillor Felicity Cunliffe-Lister, a Liberal Democrat who represents Masham and Fountains on North Yorkshire Council, said Brierley Homes had breached planning conditions as it had constructed an external wall at Laverton Oaks without a section 106 agreement in place.
As part of the scheme, the company was expected to contribute £113,000 towards projects such as repairing and improving the village’s allotments and improving a children’s play area and sports pitch in Kirkby Malzeard before the wall was erected.
However, the section 106 agreement between the council and Brierley Homes agreeing the terms has yet to be put in place.
Section 106 legal agreements between councils and developers outline what funds should be paid to compensate for the impact of new housing. They can include contributions towards GP practices, highways and education, as well as open spaces.
The Stray Ferret published a series of articles, which you can read here, highlighting concerns about Section 106 agreements last year.
Brierley Homes.
In a letter to senior council officials, seen by the Stray Ferret, Cllr Cunliffe-Lister claimed the planning breach had existed for more than 12 months.
She pointed out that Kirkby Malzeard Parish Council has been awaiting funds for an allotments project since the development started.
Cllr Cunliffe-Lister said:
I think it is unacceptable that Brierley Homes, as a Teckal company controlled by North Yorkshire Council, conducts itself in this way.
It should not operate above the law and should not put the North Yorkshire Council planning or enforcement officers in this position. I understand that there are also highways and drainage schemes that should have been approved before works started but remain unresolved.
In response to Cllr Cunliffe-Lister, Nic Harne, the council's director of community development, said there were "a number of matters controlled by condition have not been resolved to date, including the completion of a legal agreement".
Brierley Homes has been criticised by councillors for being reliant on council loans to help its cashflow issues.
The council’s most recent decision in March saw it approve a £300,000 drawdown from its £27 million loan facility for the firm.
On multiple occasions, the authority has cited the need to allow the company time for sales to be received as a reason for approving further funding.
In her letter to council directors, Cllr Cunliffe-Lister said she wanted assurance that the company’s recent issues with cashflow would not contribute to any delay in completing the section 106 agreement.
The Stray Ferret asked North Yorkshire Council to respond to the planning breach and explain why the company had yet to reach an agreement over the section 106 contributions.
We also asked whether Brierley Homes would have the funds to be able to comply with the agreement.
A council spokesperson said:
This is a live planning matter with the final format of the agreement being progressed with our legal team. We are unable to comment further at this time.
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