Business Plan shows Barley Homes is a growing success

A new report out for West Suffolk Council owned Barley Homes (Group) Ltd shows growing success, new development and income for the authority despite globally challenging times.

The Barley Homes business plan which will be heard at West Suffolk Council’s Cabinet on 5 December shows an income of £2.3 million over five years for the authority.

Members of Cabinet will hear how significant progress has also been made on the 2022 business plan during challenging times for developers and rising costs and inflation.

This has included completing the sites set out in its business plan at Stonemill Park and Westmill Place in Haverhill. At these two sites Barley Homes have delivered 63 homes, of which 19 were affordable.

Barley Homes has now also bought land and submitted plans for houses in Rougham with more development planned in the pipeline.

The Rougham development is for 13 new homes, nine market homes – a mix of two, three and four bedroom properties, as well four affordable homes – a mix of one and two bed properties. The houses will benefit from sizeable rear gardens with countryside views.

The report also highlights that further progress includes Barley Homes purchasing the College Heath Road site in Mildenhall (One Public Estate assembled site), with work progressing with a local Registered Provider in delivering a scheme that will help address local housing need.  

In addition, a draft development brief is being prepared for land at Great Barton which will facilitate the delivery of market and affordable housing, alongside a range of landscaping, play space and community facilities.

This ongoing development pipeline enables Barley Homes to not only deliver much needed housing but also financial returns to West Suffolk Council through loan interest receipts and dividend payments.

This year the company provided a total return of £602,000, more than double what was expected. This will help offset the re-profiling of the budget needed due to the lower returns expected in the next two years for the company to meet the challenges faced in the development industry. In total the council should see a return of £2.36 million across the next five years.

Cllr Cliff Waterman, Leader of West Suffolk Council, said: “Barley Homes (Group) Ltd continues to be a success in delivering homes, including affordable ones, as well as bringing in a sizeable return on investment for West Suffolk tax payers. All of this at a time when costs are soaring for developers as the cost of living crisis continues and inflation has risen. The way councils are funded means local authorities have to find income from other sources and Barley Homes Ltd not only achieves that but has helped develop areas that had been an eyesore and provided much needed homes at reasonable prices. I look forward to their achievements over the next year.”

Cllr Richard O’Driscoll, Chair of Barley Homes Shareholder Advisory Group, said in the business plan: “2023 has been a busy, albeit challenging year for Barley Homes. Work has been ongoing to tackle these challenges and position the company to continue with success over the years ahead.

“Barley Homes has moved forward with its proposals for the site at Rougham, with a planning application for new homes now submitted. Additionally, work is underway, with various stakeholders, to progress the Development Brief and subsequent planning application for the land at Great Barton.

“Barley Homes aims to maximise affordable housing provision on each site. Its business model, and its relationship with West Suffolk Council, means it is driven by what most benefits the district – this means a commitment to providing affordable housing alongside sustainable well-built homes and communities, as well as making a financial return for the council as its shareholder, funding that can then be reinvested in council services. This focus is imperative in the challenging economic times our country faces and means that we take a carefully calculated approach to risk with our projects.

“As we all navigate the changing economic times ahead, Barley Homes remains committed to creating thriving communities across our district.”