A council-owned housebuilder will honour a commitment to pay £131,000 towards community improvements agreed when planning permission was granted for a new housing estate.
Brierley Homes, which is owned by North Yorkshire Council, has faced criticism after it emerged that the company was considering applying to amend a Section 106 agreement which set out the payments to Kirkby Malzeard Parish Council.
The payments were part of the conditions for planning permission being granted for the 33-house Laverton Oaks development in the village.
Last month, councillors were told that it was “no longer viable” for Brierley Homes to pay the full amount and an application would be submitted to the strategic planning committee to have the contribution reduced.
But in an announcement this week, Tony Dodds, the housebuilder’s managing director, said that while the company may still apply to vary the agreement, the community funding pledge would be honoured.
He said: “Due to the viability issues on this site, Brierley Homes is considering making a formal application to vary the Section 106 agreement relating to the provision of affordable housing at the Laverton Oaks site in Kirkby Malzeard.
“This is a route open to any developer which faces viability issues on a particular site. This would be the first time that Brierley Homes will have made such an application
“At this time the 106 agreement isn’t signed, and even if it was, the payment to the parish council is not yet due.”
But he added: “We have listened carefully to concerns and feedback from the local community, those expressed by local members and members of the executive, and we are pleased to confirm that we will honour the payment of £131,000 to the parish council and will not be seeking to reduce or remove that payment.
“We will commit to providing the funds to be spent under the conditions agreed.”
Mr Dodds said the company was working with housing provider Broadacres to find a way of providing more affordable homes on site.
He added: “This may mean we still need to vary the 106 agreement.
“As a housebuilding business, we remain absolutely committed to providing more affordable homes, but we also need to be pragmatic and ensure we take an approach which reflects budgets and the housing market.”
Local North Yorkshire councillors and Laverton and Dallowgill Parish Council were critical of the plan to alter the agreement.
Reacting to the U-turn by the developer, group leader of North Yorkshire Liberal Democrat councillors, Peter Lacey, said: “This is a really positive outcome for Kirkby Malzeard, and a victory for the local community, who made it clear that this commitment simply had to be honoured. I’m pleased that Brierley Homes has listened, and confirmed it will pay the £131,000 in full to the parish council.
“From the outset, Liberal Democrat councillors have worked alongside residents and the parish council to press for this agreement to be upheld.
“This funding was promised as part of the development and it is only right that local people receive the assured investment.”
Brierley Homes made a £7.8m loss in 2025/26 despite the company previously forecasting a profit of £350,000.
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