Cllr Russ Bowden
A LOAN deal that will help build 37 much-needed new homes in one of Warrington’s most deprived areas has been agreed by the borough council.
The council’s executive board has approved plans for a £90 million, 25-year loan agreement with Helena Partnerships Ltd (HPL) to be amended.
Under the revised terms, £7m of the total loan amount will now move to a five-year term.
This shorter loan period will attract a lower rate of interest, enabling HPL to deliver 37 affordable homes in Bewsey and Dallam.
The amendment has been agreed by the council in response to rent reductions introduced by the Government in April, which had had a direct impact on the financial viability of the scheme.
Now, HPL can move ahead with the delivery of the housing, providing a further boost to the “Delivering Wellbeing in Bewsey and Dallam” project, which is transforming the area through new housing, a community hub, neighbourhood renewal and a focus on building healthier futures for local people.
Cllr Russ Bowden, the council’s lead member for corporate finance said: “We know how important these housing proposals are to the wider development of Bewsey and Dallam, so it’s great news that we’ve agreed this revised loan deal.
“This five-year loan, together with the allocation of a further £500,000 in council funding, ensures that the scheme remains financially viable.
“We were one of the first local authorities to use this loans model when it was initially agreed in 2014. This is another example of how we are doing things differently and finding innovative ways to unlock the funding needed to deliver the new housing and regeneration our neighbourhoods need.”
The initial loan of £90m was provided in 2014 to St Helens-based Helena Partnerships Ltd – one of the largest developers of affordable new homes in the North West – to fund the building of 1,400 social and affordable homes. The loan will now split into two tranches:
•£7m – moving to a new, five-year term
•£83m – remaining at a 25-year term.
HLP will use the £7m, five-year-term tranche of the loan to drive forward housing renewal at Harrison Square, a key element of the regeneration of Bewsey and Dallam. It will see 24 new build homes built on the site, consisting of 18 two-bedroom houses and six two-bedroom bungalows.
Dallam Primary School has also declared land to the rear of the Harrison Centre surplus to their requirements and an application has been submitted to the Secretary of State to build homes on the land. If approval is given, it will pave the way to a larger redevelopment, providing 37 new homes.
