Scrapped £100k homes scheme 'not transparent'

Decisions on a scheme, which should have seen affordable homes built in Cambridgeshire and Peterborough, were not transparent, according to a new report.

Papers being presented to the Combined Authority Overview and Scrutiny Committee on Wednesday criticise the proceedings of a project, which was abolished in 2021.

When the combined authority was created in 2017 it was allocated £100m to contribute to affordable housing schemes.

However it was severely criticised by the government in March 2021 for "insufficient progress".

It was abolished after the mayoral elections that year by the incoming Mayor, Labour's Nik Johnson.

When the scheme was launched, under the leadership of former Conservative Mayor James Palmer, it pledged to offer affordable homes with a sale price of £100,000 for local residents.

However, it was criticised by government ministers in 2019 for not making enough progress.

Some of the £100m was used to fund loan agreements to developers, with the CPCA expected to take a share of any profits.

Now papers being presented to the combined authority show that there were concerns around the loan agreements to housing developer Laragh Homes. This included a development at Forehill in Ely.

The papers say: "Concerns were raised with internal audit in 2023 relating to final contracts agreed for housing loans whereby an allegation was made that profit share agreements were omitted from final contracts."

It goes on to say they "were suspicious of the risk of irregular, unprofessional activities and working arrangements between the developers and the Combined Authority".

Wednesday's Overview and Scrutiny Committee will be the first time details of the audit have been made public.

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