North Yorkshire Council's housebuilding company is forecast to make a further £5.8m loss this year, with its financial problems wiping out profits generated elsewhere in the authority’s Brierley Group.
Brierley Homes has already recorded a £1.049m loss during the first quarter of 2026/27 and is forecast to post a £5.827m loss for the full year.
The company made a £7.8m loss for the last financial year despite forecasting a profit of £350,000 in October 2025.
A review by a new managing director has since resulted in a revised budget and five-year recovery plan.
A report on the Brierley Group’s finances is due to go before North Yorkshire Council’s shareholder committee on Tuesday.
It states that £3.7m of the figure relates to loan interest and a service level agreement charge paid back to the council.
Councillor Peter Wilkinson, executive member for finance and resources, said it was hoped the five-year plan would turn the business around.
He added:
“I’ve only been in role for six weeks so a lot of the history and legacy I’m playing catch up on.
“But the future losses they’re talking about, a lot of that is interest in terms of loans they’ve taken from the council.
“I’ve got a briefing next week in preparation for the meeting on Tuesday, and I’m reviewing with officers the five-year business plan to satisfy myself that it’s robust and achievable, and that will form the discussions and the decision we make on Tuesday.”
Cllr Wilkinson said the aim was to “de-risk” Brierley Homes by building affordable homes which the company could get grants for and luxury homes which would be bespoke properties built to order, rather than building homes speculatively.
Officers say the poor performance reflects loss-making developments started during 2025/26 and previous years which are still being completed.
The report describes Brierley Homes’ short-term position as “difficult”, with high loan interest costs and other legacy debts also weighing on the business.
The problems at Brierley Homes mean the Brierley Group as a whole is forecast to make a £2.64m pre-tax loss this year. The £5.8m loss at the housebuilder offsets combined profits of around £3.2m elsewhere in the group.
Other businesses are performing considerably better. Align Property Partners and Align Property Services are forecast to make a combined £2.16m profit, while North Yorkshire Education Services is forecasting £462,000 and First North Law £137,000.
Council officers remain confident Brierley Homes can recover, with new profitable projects being introduced and the company predicted to return to profit from 2027/28.
New developments include 49 affordable homes at Broomfields in Whitby, while previously paused schemes are also restarting.
The five-year plan forecasts Brierley Homes will ultimately generate a cumulative positive shareholder value of £6.34m.
Despite the overall group loss, the council calculates that the Brierley Group will provide £8m of wider “shareholder value” during 2026/27 through factors including financing income, efficiencies and other financial benefits.
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