Lion Homes, which was Norwich City Council's social and affordable housing arm, has appointed liquidators after City Hall agreed to close and liquidate the company last year.

Accounts show the firm made £5 million in losses in five years, 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 council was overcharged.

Mike Stonard, then chairman of the Norwich Regeneration Company, cuts the ribbon to open the first of the Passivhaus homes at Rayne Park, Bowthorpe (Image: Denise Bradley)

It later emerged that its performance was ‘not regularly tracked’, according to a leaked report.

The review last year found that the company's shareholder panel, which included councillors and was supposed to meet four times a year, had not met since November 2023.

The firm had built up losses of £5.72 million, while the council had invested £3.42 million and provided a loan of £6.15 million, which has since been written off.

Lion Homes Developments Ltd appointed joint liquidators Christopher Brown and Emma Legdon of Hart Shaw LLP on March 19.

A notice has been given to creditors of the company to send their names, addresses and details of their debts and claims, and the names and addresses of their solicitors, to the liquidators on or before April 27.

© Norwich Evening News