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15
Jun
Council to buy two homes from its own loss-making housebuilder
North Yorkshire Council looks set to purchase two homes from its own loss-making company.
Brierley Homes, which owned by the council, is currently overseeing the construction of The Paddocks housing scheme in Great Ouseburn.
The development, which was given planning permission in 2018, is expected to see nine houses built on Branton Lane.
But, Brierley Homes, which posted a £7.5 million loss last year, has been criticised by North Yorkshire councillors in recent months for being too reliant on council loans to help its cashflow.
Despite this, the council has confirmed it is set to purchase two houses on the Great Ouseburn site to help with its affordable housing stock.
The move will be the first time the council has bought properties from the company.
The Stray Ferret asked North Yorkshire Council why it was pursuing a purchase of the homes and whether it thought it was a wise financial move given the company’s current finances.
A spokesperson for the council said:
The demand for affordable housing across North Yorkshire is high and the council has an ambition to develop or secure an additional 500 council houses over the next four years.
The purchases are in line with the council’s property procedure rules, and independent valuations and an appraisal is used to ensure they represent value for money. They are also supported with a Homes England Grant and their own appraisal process.
The move comes as Brierley Homes has been criticised by councillors for being too 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 a £27 million loan facility for the firm.
Authority officials said the loan will be paid back back at a commercial rate of interest.
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.
However, several councillors, including Cllr Kevin Foster, leader of the Green and Independents group on North Yorkshire Council, have questioned how the council can justify further money for the company.
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