A housing company set up seven years ago to build 220 homes in Mansfield has repaid about £3.88million of its £8.8million loan from the council, the district’s mayor has confirmed.
Mansfield District Council loaned the sum to company Mansfield Homes Ltd after it was set up in 2014, funded specifically to create 23 ‘executive’ homes across the district.
The properties, the council confirmed in 2019, are based in the Wildflower Rise development, off Windmill Lane, and are priced between £415,000 and £540,000.
They are being marketed by estate agent Burchell Edwards.
Now councillors have been told 12 property sales have been completed, with one further home sold subject to completion.
The income to the estate agent, alongside the sale of the showhome at the Wildflower Rise development, means the company has been able to repay £3.88 million on the loan.
Andy Abrahams (Lab), the district’s elected mayor, reported the update to full council on Tuesday (October 26).
He confirmed the authority will receive a £413,000 dividend from the sales.
He told councillors “At the time of the last report [in April], four property sales had been completed and six had been reserved.
“Since then, 12 properties have completed [in total] and one is sold subject to completion.
“Sales and viewings slowed down in the summer, which was expected following the end of the stamp duty holiday in June.
“At the end of September, the company had repaid £3.88 million and continues to make repayments as and when further properties are sold.
“The net profit on the development, which will be returned to the council in the way of a dividend, is estimated to be £413,000.
“This continues to be affected by the rate of sales and loan interest.”
Mr Abrahams’ report to councillors came following his own delegated decision to accept the £413,000 dividend earlier this month.
Cllr Mick Barton, leader of the Mansfield Independent opposition group, was part of the previous administration that approved the £8.8 million loan.
Speaking in Tuesday’s meeting, he welcomed the sale of properties but said the dividend sum is “disappointing”.
He said: “It’s nice to see the [properties] finally moving, it just seems to have taken a long time to get here – hence why our dividend is a lot smaller than was [planned].
“It’s taken a couple of years to get to this stage. It is nice to see them selling, of course, and it is positive news, so I’m not going to down-talk it in any way.
“The disappointing thing is that it’s not bringing the council the original funding we thought it would.”
