Darlington council in £9.5m venture to build on housebuilding success

Darlington Borough Council’s cabinet has approved the borrowing of a further £9.5m to create another housebuilding joint venture, following the success of its current schemes.

The local authority had seen its previous schemes “far outstrip expectations” over their profitability.

In a recent council meeting, councillors unanimously agreed to setting up the latest joint venture company, in partnership with Esh Homes, to create large extra sums for frontline services.

Councillor Charles Johnson, the authority’s resources portfolio holder, said it was forecast that the latest scheme would deliver an average 17 per cent return on capital. The scheme will achieve this by looking to bring forward residential development of homes for private sale and affordable housing.

Pre-tax profits would average at over £1m, according to Cllr Johnson.

READ MORE: Joint ventures on the rise?

READ MORE: Joint ventures: Are we better together?

Asked about risks, he accepted there were risks to the enterprise in regard to build costs and sales, but added: “Mechanisms [would be] in place to mitigate the risks as far as possible and safeguard the council’s position.

“This is extremely good business.”

Previously, Darlington Borough Council has formed 50:50 split firms with the housebuilder for developments in the Eastbourne, Middleton St George, Heighington and West Park Garden Village areas of the Borough.

However, the council envisages that future development sites may extend beyond the borough of Darlington – while still remaining within the North East region.

The four aforementioned ventures are projected to provide 388 new homes, an estimated new homes bonus of £2.1m, a post-tax profit of over £3m and a surplus of loan interest payments of £1.1m. That came from a maximum investment of £24.3m.


Earn up to 16 CPD points, participate in workshops, seminars and innovation hubs on public service delivery


There are no comments. Why not be the first?

Add your comment


public sector executive tv

more videos >

latest news

View all News


Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >


Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

Cleaner, greener, safer media: Increased ROI, decreased carbon

23/06/2020Cleaner, greener, safer media: Increased ROI, decreased carbon

Evolution is crucial in any business and Public Sector Executive is no different. Long before Covid-19 even became a thought in the back of our minds, the team at PS... more >
read more blog posts from 'the raven' >

public sector events

events calendar


August 2020

mon tue wed thu fri sat sun
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

featured articles

View all News