Council approves plan to inject £5.3m into its Barley Homes company to develop housing sites in Bury St Edmunds and Mildenhall
Plans to inject £5.3 million into a council-owned company were given the green light on Tuesday.
West Suffolk Council approved the spend, which would enable Barley Homes to develop housing sites in Bury St Edmunds and Mildenhall.
Barley Homes could build 118 homes – 30 per cent would be affordable – on the two sites, which are owned by the public sector estate. Their location is under wraps.
It is estimated they could generate a one-off return of up to £3.9 million.
The council can continue to make money from Barley Homes through loan interest payments, profits, support services and land sales.
A business plan, which has not been made public, and funding plans for future developments were discussed by full council on Tuesday.
The capital programme for West Suffolk already includes £7.5 million for Barley Homes for two existing sites.
A £350,000 budget also needs to be set up ‘to fund the council’s share of costs to progress planning applications for the Mildenhall site and also the development of future pipeline sites’.
Sara Mildmay-White, West Suffolk Council portfolio holder for housing, said: "I am pleased the council supported the recommendations, which means not only can we deliver quality homes, including affordable ones, but also income to support our services."
More by this authorCamille Berriman