Following the council’s statement of accounts being published, the latest financial position around This Land can now be clarified.
The council has wanted to be as transparent as possible and been working hard behind the scenes to scrutinise and maximise the opportunity, whilst not wanting to jeopardise any commercial sensitivities.
Since the original case for a wholly-owned property company, This Land, was drafted in 2016, the landscape has changed – it has survived a pandemic, the national regulatory picture has evolved, and housing companies nationally have seen significant market slow down.
As detailed in the council’s statement of accounts, the loan owed to the council is £119m, which the council expects to be repaid by 2029. This loan was provided to sustain the company’s operation, secure future cashflows and help protect the future value for the council. No loan repayments have been missed by This Land to date.
In March 2025, following detailed consideration of the This Land’s financial position (including through reports to committee in July 2024, January 2025, February 2025 and March 2025) and in conjunction with the work of external experts in challenging and assuring This Land's business plan, the council agreed to restructure the loan payments.
To date, This Land has repaid the council £15.5m of loans and £42m of interest arising from the loans. This is as per the agreement and the council is working with This Land to structure the remaining repayments.
The £119m loan has been converted into two tranches – the first is for is for £59.9m, which is a repayable loan and commercial interest will be charged. The second is a £59.85m grant, this sum of money will be repaid dependent on This Land’s future performance and is not subject to interest.
Even if This Land was not able to make performance related repayments on the £59.85m sum, the council will still see a balanced position in terms of cash in from This Land and cash out to This Land by 2029 – due to interest payments received in addition to loan repayments.
In July, the Shareholder Sub-Committee will consider This Land’s business plan. The business plan projects a medium-term position that enables the company to repay loan interest and reduce the amounts owed to the council. The business plan will be made publicly available for this meeting, with certain details kept confidential to protect the commercial interests of This Land.
The updated business plan takes a more risk averse approach than the previous strategy, reflecting the council’s need to reduce the risk. With the restructuring of the repayments, it means as This Land secures cash from sale proceeds it will repay the £59.9m of loans plus £21m of further interest, resulting in nearly £140m of cash paid to the council over the lifetime of the company.
Michael Hudson, Executive Director of Finance and Resources at Cambridgeshire County Council, said: “I’d like to reassure Cambridgeshire council taxpayers that the council has not lost money through its investments in This Land.
“This Land has already helped build or facilitate the building of almost 1,000 homes, including 300 which are affordable homes, with more to follow. What we are doing now is making accounting updates to reflect the restructuring and ensuring there is no risk of unforeseen costs in later years.
“We have learnt lessons, and we continue to learn. We’ve taken actions from a report commissioned by Avison Young, as well as taken advice from experts and have strengthened governance in place. The council has set up the Shareholder Sub-Committee to lead on commercial companies, including This Land, we have also ensured the company board has strong leadership experience to take This Land forward.”
The council will continue to hold specific reserves to help with the risks associated with This Land and has incorporated the impact of the loan restructuring into the council’s business plan.
Mr Hudson added: “This Land has provided Cambridgeshire with affordable housing for residents, which will improve lives, and the income received enabled this council not to have to make as many difficult financial decisions as other local authorities around the country.
“We will continue to be as transparent as possible, whilst ensuring the stability of the company, which will ultimately result in getting our loan repaid.”
