PLANS to launch two new companies to increase housing in the area have been revealed by Wiltshire Council.

A 250-home wishlist has been released, which would see Wiltshire Council borrow £50m to buy 50 houses a year.

The houses would be bought off the open market and rented out at a cheaper than market rate.

People who could be set to benefit include key workers and people leaving the care system.

The move has been supported by the cabinet member for adult social care, who believes it could solve housing and recruitment issues for key health and care workers, which is a particular problem for Salisbury.

Cllr Laura Mayes, cabinet member for children’s services, backed the move for more help for young adults leaving the care system. Current housing allowances for care leavers means some can only afford rooms or house shares, according to the council.

A second company would be set up to develop and build homes on council-owned land instead of selling it to private developers. Wiltshire Council says that by running the companies, a constant revenue stream will be created for the council.

Cabinet member for housing Cllr Richard Clewer said: “This will be a new venture.

“This is a 50-plus year plan that I hope will be supported by all parties in the future and that we are all have a good comprehension of.

“It is not just of social benefit, but part of a strategic plan.

“Both companies are designed to bring revenue back into the council.

“We will continue funding council houses thorough the housing revenue account. We are committed to building council housing up until that need is gone.”

Housing will be bought in Trowbridge, Salisbury and Chippenham by the new company using a £50m loan from the Public Works Loan Board.

The two companies were agreed by the cabinet this morning in County Hall, Trowbridge.

Cabinet member for finance, Cllr Philip Whitehead, said: “I’ve felt frustrated over the last few years with land assets we tend to sell. We are fortunate that we can borrow money at very low rates and therefore to be able to set these two companies up to work with our assets is something we should definitely be doing to create a revenue stream for the council that will help our budgets in years to come.

“If I had the ability to borrow money at the rates this council has, and if I had this much land as the council, I would be setting up my own company and developing it.”