North Yorkshire Council is considering a new £2m loan to sustain Brierley Homes, its council-owned house-building company, following an independent review of the business.
The review, commissioned amid concerns over performance and profitability, found that the company’s operating model remains viable and capable of delivering medium-term shareholder value. Brierley Homes has experienced a challenging trading period marked by global market impacts, contractor issues and project delays, which contributed to cost overruns and high debt levels.
Since its launch in 2017, the company has developed more than 500 homes, including over 200 affordable properties. Loans from the council currently total £22.493m, with £2.346m in unpaid interest. Previous repayment deadlines have been extended to 2028, and a £1.4m emergency loan was issued earlier this year to cover supplier payments.
The proposed £2m facility aims to maintain short-term cashflow and support ongoing supplier payments, with terms set at commercial interest rates and a six-month review period. The council’s executive committee will review the proposal and the findings of the independent report at a meeting next Tuesday.
