Member Article

New funding agreement secured for Byker Estate

Newcastle’s iconic Byker Estate, which is one of only two in the country to have achieved Grade II* listed status by English Heritage, is looking forward to further major improvements following negotiation of a new loan facility by the Byker Community Trust (BCT), which owns and manages its homes.

In 2012, over 1800 homes, commercial properties and land on the estate transferred from the ownership of Newcastle City Council to the BCT.

At the time of transfer, BCT secured a £12 million loan facility from Yorkshire Building Society (YBS) towards a £26.5 million planned capital investment programme designed to deliver improvements to the estate, which was designed by architect Ralph Erskine.

Now the loan facility has been renegotiated with the lender, allowing the BCT to borrow up to £26 million for 10 years from December 2014. The business has also negotiated improved interest rate terms as part of the deal which has been independently market tested to ensure it represents good value for money.

The refinancing means that the BCT will be able to build on the early regeneration work which it has already carried out and is ongoing on the estate, including the external refurbishment of the Byker Wall itself.

Jill Haley, Chief Executive of the BCT, said: “This is excellent news for the BCT and for the residents of the Byker Estate who will see further significant improvements to their homes and their community over the next decade. When residents voted to transfer ownership and management responsibilities to the BCT in 2011, they did so on the basis of a promise which was made to them. That promise was to breathe new life into the estate through a comprehensive programme of regeneration. Through this funding deal, we can continue to deliver on that promise in the years ahead.”

Jim Coulter, Chair of BCT, said “When the stock transfer of the estate was initiated there was limited funding available on the finance market and we secured a 5-year loan facility. The market has changed dramatically since then and rather than wait until the end of the loan period, it was prudent for us to stay agile and to seek better terms, to take advantage of more buoyant market conditions.

“Yorkshire Building Society have worked closely with BCT since inception and we were delighted when they agreed to partner with us to secure a 10-year facility. The offer they have made us has been independently verified as representing good value for money, they have offered improved terms, reflecting the easier funding markets presently. The new terms increase our investment capacity and refinancing now will also save us the considerable legal fees which would have been applicable in 2017, when the old loan facility was due to expire.”

John Inglesfield, Senior Social Housing Manager at Yorkshire Building Society, said: “We are very pleased to broaden and deepen our funding relationship with the Byker Community Trust. As a responsible mutual organisation, which supports the local communities where our members and colleagues work and live, we are pleased that this on-going business association with the BCT represents a strong and supportive relationship with this important organisation. The additional certainty that this will provide will allow the BCT to regenerate an iconic and nationally important piece of urban architecture, as well as help improve the lives of hundreds of residents in this vibrant community.”

Improvements which have been carried out to date have focused on creating high quality sustainable housing in Byker. Award winning Avondale House is a sheltered housing scheme for older people, which has been converted into a home for armed forces veterans. Meanwhile, a former social services home, Chirton House, has been transformed into a stunning new apartment complex for the over 50s and is expected to be unveiled in Spring 2015.

In April this year, work began on a £9.5million refurbishment of the Byker Wall, the 400-home housing block which forms the centrepiece of the estate. Work is currently underway to add a new roof to the Byker Wall as well as new windows and doors to each of the homes. Communal stairwells and entrances are also being improved while a complete repaint in line with the original colour scheme is planned.

A new digital aerial system, including broadband to each property, will also be delivered, as well the upgrading of the door entry and CCTV systems that are delivered by a concierge service.

Work has also commenced on a major programme of works to upgrade the Byker District Heating System. This will make it a more efficient and reliable service, to provide heating and hot water to everybody on the estate and to help reduce fuel poverty. These vital improvements have enabled the BCT to keep the heating and hot water charges at the same level for four years, which is good news for residents when other energy providers have increased their charges by an average of over 30% during the same period.

Future regeneration work is set to include environmental improvements to the whole estate and the BCT will engage and consult with local residents to find out what their priorities and aspirations are for the area.

Annette Patten, Vice Chair and Tenant Board Member of BCT, said: “Byker is one of the best known social housing estates in the country. At the time it was built, it was seen as a model for how future housing estates could be with an innovative approach which involved the local community in how it would be designed. However, within a few decades it had fallen on hard times and by the end of the last century its best days seemed behind it.

“Since the BCT took over responsibility for the estate, the fortunes of Byker have begun to turn around. Things are on the up and there is a return of pride among people - in their homes and in their community. True to their promise, Byker is once again becoming a place people want to live and work.”

This was posted in Bdaily's Members' News section by Craig Downs .