Housing firm's future to be decided after £1.7m loss

Swindon Borough Council set up the Swindon Housing Development Company in 2017

The future of a housing company set up by a council is set to be decided this summer after making a loss of £1.7m.

Swindon Borough Council set up the Swindon Housing Development Company in 2017 with the hope of delivering schemes with social benefits to the area and helping pay for essential council services.

But it did not build any houses in 2024-25 it was revealed in a report to the council's cabinet which showed a mixed performance by the private companies it owns.

However, a solar farm owned by the council made a £297,000 profit, the report said.

The housing company made a loss of £349,000 in 2023-24 and £481,000 in 2024-25, with cumulative losses adding up to £1.7m, reports the Local Democracy Reporting Service.

Options for its future will be considered by the council's cabinet in July.

The council also owns solar farms Common Farm and Chapel Farm, and a joint venture it formed with BDW Trading Ltd/Barratt Developments PLC to build the Wichelstowe expansion.

Ten years into its 20-year business plan, the report said Common Farm is "performing well ahead" of expectations "largely due to higher energy prices than originally envisaged".

'Reliability issues'

Chapel Farm was also established in 2015 but has made £826,000 in losses. This was due to "reliability issues with equipment" according to the report.

The company has paid rent and rates to the council of £266,000.

In Wichelstowe, the council has received 50% of development profits and equity fees of £10.6m which are profit distributions from the sale of more than 900 houses.