Understand
Housing loans granted during Andy Burnham's tenure as Greater Manchester mayor face scrutiny by councillors
Overview
Councillors on the Greater Manchester Combined Authority's Overview and Scrutiny Committee are investigating housing loans issued to property developers since 2015. Over £1bn has been lent to about 50 developers from the Greater Manchester Housing Investment Loan Fund. Concerns have been raised regarding the transparency of the approval process and why successful businesses, including three property companies controlled by Manchester City's Abu Dhabi owner, received public money from a scheme originally intended for projects struggling to access financing. The GMCA stated that the loans were issued at commercial rates, have been fully repaid with interest, and have delivered 11,000 new homes.
Key points
- Councillors are investigating housing loans granted to property developers while Andy Burnham was Greater Manchester mayor.
- Around £1bn has been lent to about 50 developers from the Greater Manchester Housing Investment Loan Fund (GMHILF) since 2015.
- John Leech, chairman of the GMCA's Overview and Scrutiny Committee, raised concerns about the transparency of the loan approval process.
- Three property companies controlled by Manchester City's Abu Dhabi owner were granted loans worth about £55m in total during meetings chaired by Burnham in 2017.
- The GMCA defended the scheme, stating that loans were lent at commercial rates, fully repaid, and resulted in 11,000 new homes without costing taxpayers.