Lion Homes, which was Norwich City Council’s social and affordable housing arm, made £5 million in losses in five years, according to accounts, while homes in one development it built were sold for less than what they cost to build.
The Labour-run council had to write off a £6 million loan to the company, saying it had struggled becasue of “spiralling borrowing costs and a hostile planning system”.
Lion Homes was founded as Norwich Regeneration Limited in 2015 and was set up to develop private housing projects to raise income for the council, while also providing affordable homes.
But in 2020, it was revealed that the company had lost £6 million when homes at Rayne Park, in Bowthorpe, were sold at a loss and the…