There are fears that many first-time buyers will still struggle to afford the Harrogate district’s high property prices despite a new national scheme offering up to 50% discounts.

First Homes aims to support the sale of new homes to people in the district, which is one of the most unaffordable places to live in England, with average house prices around 11 times average incomes.

Discounts of at least 30% can be knocked off market prices under the scheme, but councils can increase this to either 40% or 50% if they can “demonstrate a need”.

The scheme has been hailed by government as a move to help people get on the property ladder, many of whom will be key workers such as NHS, care home and supermarket staff.

But with the average property price paid in Harrogate last year rising to £395,526, there are fears that the current housing boom and years of rising prices will mean home ownership will still be out of reach for many – even with the top discounts.

Conservative-controlled Harrogate Borough Council has backed the scheme but described it as “problematic” and said it is “highly unlikely” that first-timer buyers will be able to afford new builds in the district.

There are further concerns that the scheme will slow the delivery of much-needed rental homes, which around 1,800 Harrogate district households have registered for.

This is because First Homes requires housebuilders to nominate a proportion of their properties for sale discounts – and this could mean renters miss out.

People needing rented homes ‘will lose out’

Councillor Pat Marsh, leader of the opposition Liberal Democrat group on the council, said it is these households which can only afford to rent that are in the greatest need:

“Our residents needing affordable rented homes will lose out and Harrogate will suffer from not having the mix of residents that will sustain our economy and fill our important key worker roles.

“We question whether this is the most effective way of meeting overall needs if it displaces other tenures which are needed.”

The scheme is for first-time buyers only and does restrict some households with a combined annual income of more than £80,000 from applying.

There are also price caps which mean that after the discount has been applied, the buyer cannot be required to pay more than £250,000.

Those who can afford to buy a First Home without a mortgage are not eligible, and there are further measures aimed at preventing people buying the homes as an investment.

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The scheme launched last year and has recently been backed by Harrogate Borough Council, which said it would publish more information online and use it as a tool to decide planning applications.

Speaking when the scheme launched, former Housing Secretary Robert Jenrick said:

“First Homes will offer a realistic and affordable route into home ownership for even more people who want to own their own home.

“These homes will be locked in for perpetuity to first-time buyers and key workers from their local area – making them an asset to both their owners and the wider local community.”

A review has found Harrogate Borough Council should have acted quicker on controversial housing plans for the derelict Dunlopillo building in Pannal.

Residents, councillors and Harrogate and Knaresborough Conservative MP Andrew Jones all criticised the council when it approved plans for 48 apartments at the site last September.

The decision was made at officer level and without a vote from councillors, which led to the council launching an internal review into how it handled the plans submitted under rules called permitted development rights.

A report has now concluded a “longer period of time than ideal” was spent on parts of the process.

It also said residents should have been consulted with sooner and that this could have allowed time for a vote from councillors.

Despite this, the council said the plans were still “appropriately considered”.

A council spokesperson said:

“The lessons learnt review regarding the former Dunlopillo site in Pannal found that the case was appropriately considered by officers and determined in-line with the appropriate legislation.

“It was acknowledged that some internal process areas could be strengthened, including prioritisation of such applications in the future and a greater overview by senior officers.”

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The report explained that extra time was spent on the application because it was the first the council had received under permitted development rights, which fast-track the conversion of empty buildings into homes.

Since the plans were passed new proposals have since been submitted for the Station Road site with a reduced number of apartments to replace the derelict office building which has been described as a “monstrosity”.

Echo Green Developments now wants to build 38 apartments at the site, which pillows and bedding manufacturer Dunlopillo moved out of in 2008.

The proposed building is still two-storeys higher than the existing offices – something which has been a key concern for residents who are fearful the development will have a major visual impact on the area.

‘Improvements could be made’

Mr Jones had urged residents to make their voices heard on the latest plans and has now welcomed the conclusion of the review.

He said: 

“I was pleased to see that the council had done an internal review on the matter and concluded that, although all the correct factors were taken into account in reaching a decision, there were improvements in the process that could be made.

“I know planners have a difficult job with ever-changing laws and guidance. I know too that they rarely have to take decisions on issues which are uncontroversial.

“That is why I am really encouraged that they have taken the time to look back, evaluate and implement changes in regard of this brand-new class of permitted development.”

Mr Jones added: 

“After the initial submission which prompted my concerns over the decision-making process, the applicants submitted a new proposal for the Dunlopillo site.

“This superseded the earlier decision and time was available to get the application before a planning committee.

“I think this shows that not only did planners critically evaluate what had been done previously, but they implemented the positive changes identified in the report.

“I am grateful that they took this approach irrespective of the outcome of the process.”

A decision on the latest plans is expected this month.

Opposition Harrogate councillors have said they will push for the creation of a town council before the authority is scrapped.

Harrogate Borough Council is set to be scrapped in April 2023 to make way for a single county-wide authority as North Yorkshire’s two-tier system is abolished.

However, along with Scarborough, Harrogate has no town council and will be left with no lower-tier authority.

Council officials are due to “strongly recommend” that the new North Yorkshire Council triggers a governance review of the area.

But Cllr Philip Broadband, Liberal Democrat councillor for Starbeck, said the opposition party wants a town council created.

He said:

“That is something that we will be pushing for. We will be looking at ways for getting this thing done.”

Conservative leader of the council, Cllr Richard Cooper, said previously that a town council for Harrogate was “inevitable”.

He told a Harrogate District Chamber of Commerce meeting last month that a ballot could be carried out to decide whether to set up a town council.

Cllr Cooper said:

“Some people think there should be a ballot on whether to have a town council. That’s something that happens quite a lot.”

Town council review ‘could be started now’

The creation of a town council will require a community governance review, which would have to be taken on by either the county council or the upcoming North Yorkshire Council.

Cllr Carl Les, Conservative leader of North Yorkshire County Council, told the Stray Ferret that a review could be carried out now.

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However, the borough council has decided to write to the upcoming North Yorkshire Council instead.

He said:

“It [a governance review] could be started now.

“It would require a poll of residents and if they decide that they do want it then it would be carried out.”

The Stray Ferret asked Harrogate Borough Council whether it had considered to request a community governance review from the county council, but did not received a response by the time of publication.

What would a town council do?

Town and parish councils run services such as community centres and play areas, as well as maintaining bus shelters. Councillors are elected to serve on them.

The councils can also charge a precept as part of council tax bills to fund the services provided.

Under its plans for a new county-wide council, North Yorkshire County Council promised further powers for towns and parishes in a move it describes as ‘double devolution’.

It would see the councils able to run services and take on additional responsibilities.

The number of Harrogate district councillors is set to be slashed in half in what has been described as a “step back for local representation”.

In May’s elections, 21 councillors for the district will be chosen to serve on the new North Yorkshire Council – far fewer than the 42 currently on Harrogate Borough Council and North Yorkshire County Council, which will both be scrapped in April 2023.

The arrangements, recently announced as part of draft legislation, have been criticised by Harrogate’s Liberal Democrats who have raised concerns that residents’ voices will be diluted.

Councillor Pat Marsh, leader of the opposition party on Harrogate Borough Council, said:

“We see the significant reduction in councillors as a step back in terms of local representation on the new North Yorkshire Council.

“This change is being forced on us and Liberal Democrats were not in support of the proposed warding arrangements, and in fact submitted an alternative proposal to central government which they did not support.”

Make things simpler

Overall, the new North Yorkshire Council will have a total of 90 councillor seats – 18 more than the existing county council.

It has been argued that the arrangements will make things simpler for residents who under the current two-tier system can have two different councillors, each with different responsibilities over services from bin collections to highways.

The new North Yorkshire Council will be made of 89 new divisions and councillors will serve for one year as county councillors before transferring to the new authority in April 2023.

After this, the next elections will then take place in 2027.

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The new divisions have been set out by government in a draft Structural Changes Order which MPs are expected to approve by March.

Harrogate Borough Council previously chose not to submit its own warding proposals last September when its Conservative leader councillor Richard Cooper said he would be “content” with what has now been proposed.

But Cllr Marsh said she believed the areas that councillors will represent will be “too large”. She also said although her party had opposed reorganisation, it was now pushing for greater powers to be handed to area committees and parish and town councils.

This includes powers being granted to a potential Harrogate Town Council – an idea which the Conservatives have also supported.

Councillor Marsh said:

“The Liberal Democrats have not been in support of this massive change in local government representation, particularly in the middle of a global pandemic.

“As the champions of localism and the moving of decision making closer to residents, we do support the increase in powers for the new area committees and the potential for town and parish councils to be able to deliver services and manage local assets if they so choose.”

Harrogate Borough Council has insisted its housing company is performing well despite it not paying any dividends this year.

Bracewell Homes launched two years ago with the aims of turning the council a profit and intervening in Harrogate’s pricey property market to deliver much-needed rental and shared ownership homes at affordable prices.

Its developments are Horsa Way, Dishforth and The Willows on Whinney Lane in Harrogate.

It was set up with the backing of a £10 million loan from taxpayers and the council had budgeted to receive £267,000 in dividends this financial year.

However, the council has now said it won’t receive any of this money in a revelation which sparked questions over whether Bracewell Homes is underperforming.

Speaking at a meeting on Monday, Cllr Pat Marsh, leader of the opposition Liberal Democrat group, questioned if the dividend shortfall was being addressed as she said the company should be a benefit to the council and not a “drain” on its finances.

‘Extremely profitable’

But Paul Foster, head of finance at the council, responded to say the company was still “extremely profitable” and that it had continued to sell properties, although at a smaller percentage of shares than expected.

He said: 

“The company isn’t able to pay a dividend this year and the reason for that is a proportion of the shared home properties it has sold have been at shares of 25% and 30%.

“It would need to have sold shares of up to 50% for them to have enough cash to provide a dividend.

“In December, four or five properties were sold at a lower share than the company was forecasting and as a result there is less cash in the company.

“The company is not underperforming in particular. It is just not selling the larger shares which make it more cash rich.”

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According to documents filed with Companies House, Bracewell Homes had £459,565 in the bank as of March 2021.

Mr Foster also told Monday’s meeting that the council does not only benefit from the company through dividends, but also through cash coming from other areas.

He said: 

“There are three elements that the council benefits from Bracewell Homes – there is a recharge of staff salaries, interest charges on the loan that the council made to the company, and a payment of a dividend if the company is able to.

“The first two continue and we are still making money out of the company in that regard.”

40 properties by 2024

Since it was set up Bracewell Homes has so far acquired 26 homes and sold 22, which means it is on target to meet its initial aim of delivering 40 properties by 2024.

But with house prices continuing to soar and around 1,700 households on the council’s housing waiting list, there have been calls for the company to set much higher ambitions.

Cllr Marsh previously told the Local Democracy Reporting Service that the company should be aiming to deliver “hundreds” of homes to ensure low-income earners can afford to live in Harrogate where average house prices paid rose to £395,526 in 2021.

Cllr Marsh previously said: 

“Forty homes in three years will barely make a dent in the need for the 1,700 on the waiting list, some living in very difficult circumstances.

“We need Bracewell homes to set targets to achieve hundreds of houses per year otherwise this crisis will never come to an end.”

Plans have been approved to expand a Harrogate district business park to create five new buildings in an effort to boost the local economy.

Springfield Farm, on Cold Cotes Road at Kettlesing Head, just off the A59, will expand to include a new warehouse and office space.

The site’s car park will also be extended and will include electric vehicle charging points.

Harrogate Borough Council approved the proposal last week.

Quarters Commercial Ltd, the developers behind the application, said the scheme will help to “enhance an already important commercial site”.

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As part of the plan, a 9,000 square foot warehouse will be built to provide additional storage space for Kirsty’s, a gluten-free food supplier, which is based at the site.

Masterplan for the Springfield Farm business park expansion.

Meanwhile, three buildings will be built to provide nine separate units for smaller businesses. A further building will also be provided to offer office space for companies.

The developers said in its planning statement:

“Springfield Farm presents a fantastic opportunity to sensitively expand the already established commercial centre and ensure its future success and ongoing contribution to Harrogate.

“This is an exciting chance to enhance an already important commercial site, preserving the character of the area, with a quality masterplan, and well designed buildings where businesses’ can thrive, within a sustainable environment.”

A counter campaign has been launched in support of a new Tesco supermarket in Harrogate after a group of residents petitioned against the plans.

Tesco has applied to build the supermarket at the former gas works site on Skipton Road in a move which it said would create 100 new jobs.

The plans have been met with opposition from a group of residents who live on the nearby Electric Avenue and have gathered the support of almost 500 others as part of a ‘No To Tesco’ campaign.

But another petition has now been launched by residents who say there is a “significant need” for a new supermarket in the area.

Ann Lambert, who launched the second petition and has so far gathered more 100 signatures, said:

“There are thousands of homes on this side of Harrogate, the majority of which will travel at varying times across town to other supermarkets.

“The area is growing at a fast pace and it needs a supermarket that is close by and large enough to deal with the customers that are created from so much house building.”

Ms Lambert also said the 100 new jobs were much needed as she highlighted how Tesco has scaled back its plans after it was first granted planning permission for the site in 2012.

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These previous plans were never brought forward by the supermarket chain which has now proposed a smaller store.

Despite this, the group of residents living on Electric Avenue are still opposed to construction at the former gas works site which they say has become a home and feeding ground for animals including badgers, frogs, squirrels and hedgehogs.

Resident Jennifer Dance also criticised a public consultation carried out by Tesco and said there were further concerns over the potential impacts of the new store on people’s daily lives.

She previously said:

“I believe sites like this should be nurtured and cherished, not destroyed and replaced with concrete, steel and tarmac in the name of progress, prosperity and profit.”

Tesco has also acknowledged the concerns raised by residents and said all feedback would be taken onboard ahead of a decision on the plans from Harrogate Borough Council around April.

Residents can comment on the plans on the council’s website up until Sunday.

If approved, Tesco said the supermarket could open in 2023.

A Knaresborough car park is set to undergo £30,000 resurfacing works.

Harrogate Borough Council has awarded a contract to Ripon-based AE Duffield and Sons to carry out the work at Fisher Street car park.

The 48-bay car park on Chapel Street is close to the town’s High Street and is open seven days a week.

The work will see the car park relined to offer 45 parking bays, three disabled parking bays, together with directional markings and yellow hatching.

The advertised contract added:

“The works will also involve the removal of the existing timber bin enclosure, with the formation of a new, due to its current dilapidated condition.”

According to the contract, work is expected to start on February 16 and last until February 22.

AE Duffield and Sons have also carried out similar work at Ripon Cathedral Car Park, where the company was awarded a £106,000 contract to resurface the site.

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As the formation North Yorkshire Council edges closer, questions have been raised over where the new authority should be based.

From April 2023, North Yorkshire County Council, Harrogate Borough Council and the six other district authorities will be abolished and replaced with a new council.

A decision has yet to be made on where the new North Yorkshire Council will be based.

North Yorkshire County Council is based at County Hall in Northallerton, which is the hot favourite to be home to the new unitary authority.

But Harrogate’s modern Civic Centre has been suggested as an alternative. Cllr Richard Cooper, leader of Harrogate Borough Council, told a Harrogate District Chamber of Commerce meeting this month that Harrogate’s Knapping Mount had a case.

He said:

“It’s still not decided where the new council will be and it could be Harrogate. It would certainly have the best office facilities in North Yorkshire.”

No decision will be made on the location until after the May local government elections. So what are Harrogate’s prospects and what is at stake?

Harrogate or Northallerton?

The location of the new authority will be one of the key decisions that councillors make in the coming 12 months.

Ninety councillors will be elected to North Yorkshire Council, covering 650,000 residents and 32,000 businesses across England’s largest county.

The location of the new council matters because most key decisions will be made there.

Across North Yorkshire, Harrogate is the highest populated town with 75,070 people. The town itself is one of the two main urban areas in the county, along with Scarborough, and benefits from transport links, a vibrant hospitality sector and various public facilities.

North Yorkshire County Council offices in Northallerton.

It also has a modern council facility. The Knapping Mount headquarters, which staff moved into in July 2020, is purpose-built for local government. It is designed to accommodate 500 staff.

The council said the building cost £13 million. However, the Stray Ferret investigated the overall cost of the move from Crescent Gardens and put the figure closer to £17 million.

County Hall in Northallerton was built in 1906 and has served as the headquarters of various local governments in North Yorkshire, including North Riding County Council up until 1974.

The grade II listed building underwent a £500,000 refurbishment in 1999.

Cllr Carl Les, leader of North Yorkshire County Council. Picture: NYCC.

Conservative Cllr Carl Les, leader of North Yorkshire County Council, told the Stray Ferret that it would make sense for the new council to remain at county hall.

However, he added that the authority does plan to implement local office space for staff and a “double devolution” agenda for local decision making.

He said:

“It will be for the new council to decide. But there is a lot of jobs in Northallerton.

“It would not make sense to move from Northallerton.”

The sentiment is echoed by Liberal Democrat Cllr Philip Broadbank, who represents Starbeck on the county council. He said:

“There is a high chance it would in Northallerton because it is more central.

“The Harrogate council has been mentioned, but it needs to be central.”

But for Independent Cllr Stuart Parsons, the future needs to be based around regional decision making.

Cllr Parsons, who represents Richmond on the county council, said the council needed to be “trimmed” and decision-making should be spread around the county.

He said:

“I suspect they [the council[ see themselves where they are. But no one has thought to ask if that is sensible.”

Why does the council’s location matter?

Much of the criticism over the new council is that it is too remote.

The county is scattered in terms of populations, with an estimated 160,830 people in the Harrogate district compared to 55,380 in Ryedale.

Having such a large county makes the headquarter issue even more important.

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For example, if a planning decision relates to Starbeck the issues are more likely to be understood by council officers based in Harrogate than in Northallerton

Cllr Parsons said there needed to be a plan for how “double devolution”, which would give powers to local areas, is distributed.

“There needs to be a short, medium and long-term plan. We are nowhere near that.”

What happens now?

County council leaders have said a decision on where the new council will be based will not be made until after the May elections.

Currently, an implementation board made up of senior council officers and an implementation executive, which includes cabinet members from across the county, is working through proposals.

Once the new councillors are elected, decisions will be made on matters such as location, planning, senior management committees ahead of North Yorkshire Council coming into operation in April 2023.

A former Lloyds pharmacy in Starbeck could be converted into an Italian kitchen and takeaway.

Under plans submitted to Harrogate Borough Council, the site would be refurbished to include an Italian trattoria on the ground floor and two apartments above.

SSA Architects, which has submitted the application on behalf of the developer, said in its planning documents that the kitchen would provide employment for between five to eight people.

It would be open from 12pm until 12am, according to the proposal.

Meanwhile, both flats proposed as part of the development would be one bedroom.

The developer said in its application:

“The proposal looks to rejuvenate the plot by refurbishing the existing structure within the setting.

“Within this outlined development, the design aims to create an inviting setting for the new residents, and customers for the takeaway business.”

Harrogate Borough Council will make a decision on the proposal at a later date.

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