£3.88m of Mansfield Homes grant repaid

Mansfield Council loaned the sum to company Mansfield Homes 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 on the Wildflower Rise development, off Windmill Lane, and are priced £415,000-£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 development, means the company has been able to repay £3.88m on the loan.

Andy Abrahams, Mansfield mayor, reported the update to the council, confirming the authority will receive a £413,000 dividend from the sales.

He said: “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 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 £3.88m 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.”

Dividend

Mr Abrahams’s report came following his own delegated decision to accept the £413,000 dividend earlier this month.

Coun Mick Barton, leader of the opposition Mansfield Independents, was part of the previous administration which approved the £8.8m loan.

He welcomed the sale of properties, but said the dividend was ‘disappointing’.

He said: “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 it’s not bringing the council the original funding we thought it would.”

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