Nick Hardwick, chief inspector of prisons, said Ashfield had achieved good inspection reports for some time and the latest report found some excellent practice.
However, he said that at the time of inspection, the 400-capacity YOI was "barely half-full" and this had provided an opportunity to improve both the physical environment and the regime of the establishment.
This needed to be sustained as numbers increased again, he added.
Ashfield was found much safer than previously, with "very good" procedures for supporting young people in the early days of custody, as well as good support for the vulnerable and those at risk of self-harm.
Relationships between staff and young people were generally good, race-relation work was well developed and mental health services were excellent.
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