Council explores £1.3m scheme to buy former Barclays Bank in Berwick and create affordable housing

Berwick Town Council has agreed to explore the possibilities of purchasing the Hide Hill property and progressing with the £1.3m project.

The idea is still in its early stages and councillors were assured – after concerns were raised about the financial implications of borrowing a large sum – that there is no commitment at this stage.

Further detailed financial and survey work will be carried out and, in due course, any proposal would go to public consultation.

Mayor John Robertson said: “We see an empty building in this town centre and we see the opportunities for that building. It’s not going to be solely a council building.

"We are looking at the opportunity to create local housing which is in dire need in this town. It’s not been decided yet though – we need to make sure the figures balance.”

Indicative figures put before councillors include borrowing £1.3m on a public works loan from HM Treasury at 6% over a 50 year period. This would include the purchase of the building which has already been negotiated.

It is thought the upper floors could be used to create six apartments – generating revenue that reduces the net cost of borrowing to residents. Rents would be set at affordable levels and a partner would manage the scheme.

The ground floor would be used for council/civic purposes with the possibility of commercial space.

"It’s a huge amount and that’s a lot of interest over 50 years,” said Cllr Catherine Seymour,, who felt it was ‘over-ambitious’.

Cllr Robert Bruce added: “I definitely don’t want to commit Berwick people to paying for this for the next 50 years. I think it’s absolutely crazy.”

However, councillors voted 11-2 in favour of exploring the project further.

Cllr Graham Brown said: “We all joined the council because we want to make Berwick a better place. This is a contribution to that.

"Now there are risks to it and that is clear but we’re not doing this recklessly. It’s an affordable proposal. The figures sound enormous but we can’t look at one side of the equation and not talk about the other.

"The benefits to the council are great and the benefits to the town centre are great. We have an opportunity to create new housing and I think we should grab it.”

The council’s lease on its current office space on Marygate runs out in July 2027 and Cllr Robertson’s view is that it is not fit for purpose.

"We will have to move from this building at some point to create more working space,” he said. “We can’t physically do it on this footprint. Whether it’s this building (Barclays) or not, we will have to move.”

During the public speaking section of the meeting, local resident Stephen Scott said: “The first thing that comes to mind is that the extra income that is generated from the move does not even cover the cost of the loan repayments so I think that’s enough to question the idea at this point in time.”

Fellow resident Lizzie Middlemiss felt the current town council offices were the ‘perfect location’ and called for the layout to be reorganised to give it a public-facing space.