Council's housing firm sees profits rise by 18%

Richard Overton said setting up Nuplace a decade ago had been a "bold move"

A council-owned housing company has seen its profits rise by 18% in the last year.

The profits allowed Labour-run Telford and Wrekin Council to put an extra £302,000 into its budget, a meeting was told.

Since Nuplace was formed in 2015 the council has built 608 homes, with a further 276 planned or in delivery.

Conservative councillor Rachael Tyrrell said she was supportive of the provision of homes, but added: "The rental yield is well below par."

She pointed out the council had spent £93m on the company over the last 10 years.

Richard Overton, the Labour councillor responsible for housing, said creating Nuplace in 2015 had been a "bold decision".

It was done, he said, to "try to improve the private rented market and offer a good quality tenure," but it had also provided a dividend for the council, its sole shareholder.

Labour councillor Nathan England said the council also benefited from more people living in local homes and paying council tax.

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.