TOWN Hall chiefs at Warrington are to be asked to approve a 25-year, £30 million loan facility to a housing association which can, if it wishes, use the money to build homes outside the borough.
Muir Housing Group manages more than 4,700 properties across 33 different councils – including 429 in Warrington.
They are currently building 41 affordable, rented homes at Egerton Street, Howley and Manor Lock, Latchford in a scheme costing almost £4 million. They also plan to provide a further 78 affordable rented 
homes in Folly Lane at a cost of about £8.5 million.
The group is keen to build more properties in Warrington and are looking at investing in the Stadium Quarter renewal initiative with a site in Winwick Street which could provide 19 apartments at a cost of about £1.7 million.
They would hope to use a high proportion of the £30 million loan in Warrington – but the proposed loan deal with the council would allow them to build elsewhere if they wished.
A report to be considered by the borough council’s executive board points out that the council has been providing loan facilities to registered social landlords since the 2008 banking crisis to stimulate housing development in Warrington.
The Your Housing group and Warrington Housing Association have been give loan facilities, as well as Golden Gates Housing Trust.
But the new deal with Muir differs from the previous ones in that the association will be able to use the money outside Warrington
The report, presented by Cllr Russ Bowden, (pictured) executive member for corporate resources, states: “This deal provides the council with the opportunity to stimulate housing regeneration and wider economic regeneration in the borough and our neighbouring boroughs.
“Getting house building moving again is crucial for economic growth because housing has a direct impact on economic output. For every new home built, up to two new jobs are created for a year.”
The deal will also generate additional New Homes Bonus to the council in the region of £1.1 million to £2.2 million over a six year period.
Council to loan housing association £30m
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Gary Skentelbery
Experienced journalist for more than 40 years. Managing Director of magazine publishing group with three in-house titles and on-line daily newspaper for Warrington. Experienced writer, photographer, PR consultant and media expert having written for local, regional and national newspapers. Specialties: PR, media, social networking, photographer, networking, advertising, sales, media crisis management. Chair of Warrington Healthwatch Director Warrington Chamber of Commerce Patron Tim Parry Johnathan Ball Foundation for Peace. Trustee Warrington Disability Partnership. Former Chairman of Warrington Town FC.
3 Comments
If this is to go ahead, the council should insist that all builders are from within the boundaries of Warrington as well as the suppliers of materials…. otherwise, if the council have got £30 million to throw around they should build the houses themselves using local labour. They have their own electricians, plumbers, architects and project managers so why give money away?
Is it me? – Surely if the council is making the loan, they should be able to dictate the terms. The article is silent on whether the funds must be applied to Warrington & neighbouring boroughs or can be used anywhere. Has the developer got Carte Blanche to use Warrington Money to fund projects in the South East for higher return ?
Stimulating economic growth is laudable but local money should be confined to local stimulus- national stimulus is for central government.
What rate of interest are we going to be receiving on this loan?????