Lion Homes, Norwich’s council-owned housing developer, has suffered eye-watering losses. In other words, these losses over the last five years have added up to a shocking £5 million. The firm’s mission is to produce high quality, new & affordable housing throughout the city. It has failed to become financially self-sustaining, resulting in the Norwich Council having to take drastic financial steps to maintain operation.
That first investment of £3.5 million saw the establishment of Lion Homes. Second, it provided an additional £6.1 million in loans to cover the company’s day-to-day operations. In spite of these efforts, Lion Homes ran into problems like selling their homes at a loss in terms of construction costs. This record of financial mismanagement has prompted arrests, investigations, and deadly panic among council members and the public.
The decision to close down and liquidate Lion Homes has been framed by Carli Harper, Labour’s cabinet member for finance and major projects, as a “strategic decision that makes sense for the long-term.” Harper emphasized that this move would not affect the planned development of 200 houses at the former Mile Cross depot.
“With this closure of Lion Homes it will allow us to do more homes,” said Harper. By doing it ourselves, we can provide a cheaper and more effective solution for the taxpayer. Norwich Council is now actively working to identify ways to extend a new progressive policy developed for a major new scheme in neighbouring Bowthorpe. This project will eventually produce 1,000 homes.
The announcement has provoked outrage from opposition members including opposition leader and Green councillor Alex Catt. Catt painted Lion Homes as the mismanaged “disaster” that left “an enormous loss” on the taxpayer’s dime. Through his unwavering advocacy and calls for accountability, he dismantled the narrative of the company’s mismanagement. He particularly highlighted the need for transparency from the Labour councillors in charge of the project.
“The lack of openness displayed by the Labour councillors who have overseen this disaster that has led to this enormous loss for the public has been striking,” – Alex Catt
Catt’s remarks emphasized the deep need for a full accounting of what caused these financial failures. In addition, he recommended that the council develop a strategy to ensure that housing is delivered at a competitive price going forward.
The Norwich Council is aggressively trying to claw assets back from Lion Homes including a huge chunk of land. It will be curious to observe how the local authority steers more local housing delivery going forward now that they don’t have the support of this council-owned development arm. The Lion Homes closure is only one part of a broader and more complex effort to address the city’s housing issues. The council wishes to bring back confidence in, and streamline their housing efforts.
