Loreburn are dedicated to delivering transformative projects that positively impact the communities we serve.
The Murtholm project holds immense potential to be a valuable addition to Langholm, and we remain steadfast in our commitment to delivering a project on the site.
However, we must inform all stakeholders that the site enabling works which have been temporarily paused will remain so for the foreseeable future due to challenges in the negotiation process with key stakeholders. This is very disappointing, as many will be aware, Loreburn had planned to deliver the enabling works contract this year paving the way for development of future phases of housing on the site.
We are unable to proceed at this time without the appropriate agreements in place and cannot continue to incur substantial costs to keep works on hold indefinitely. The challenge of delivering houses on this site has been further compounded by an increase in the cost of private finance, resulting from recent interest rate hikes, which has exerted additional pressure on the project and Association. As a result, the subsequent phases of construction, which would see new Extra Care and General Needs housing delivered on the site, will also be delayed.
The initial stages of the project exhibited encouraging progress, and we have diligently invested significant resources and effort into its development. However, the recent surge in interest rates has escalated the cost of finance associated with the project, prompting us to review our financial arrangements to ensure the project's viability and long-term success.
We understand the importance of this project to the local community, and we empathise with any concerns arising from the delay in progressing works on site. Our team is actively engaged in discussions with relevant stakeholders, including financial partners and local authorities, to mitigate the impact of increased finance costs and find suitable solutions to resume construction, as and when the business case supports investment.
During this period of review and reassessment, we will keep the community, contractors, and investors informed of any significant developments and progress towards the project's successful completion. We value the trust and support placed in us by our stakeholders, and we assure you that we are dedicated to finding resolutions to the challenges we face. We remain optimistic about the future of the project and the positive impact it will have on community within Langholm once completed.
