Reigate & Banstead BC has agreed plans to create a new commercial property and investment company.

The company is expected to generate a minimum of 6% return on investment, with acquisitions to include a mixture of homes, offices, industrial and retail properties.

Some of the council's existing assets will also be transferred to the company.

Cllr Natalie Bramhall, the council's executive member for property, said: ‘Setting up our own property company will make it quicker and easier for us to respond to opportunities in the fast-paced, competitive property market in which we cannot currently compete.

‘For example, under the Housing Act, we cannot as a council invest in and keep residential property because we cannot grant shorthold tenancy agreements. To be able to do so would enable us to provide much-needed new homes for our residents and provide a secure source of rental income.

‘It also means that we would no longer be restricted to act within our borough borders and can take advantage of opportunities that bring the most benefit wherever they are.'