PLANS have been drawn up for major investment in residential property to protect key services across the New Forest.

The scheme, which will be discussed by New Forest District Council's cabinet on Wednesday, December 6, will see an initial £10m investment by the authority to purchase houses and become a private sector landlord.

Portfolio holder for finance, corporate services and improvement, Cllr Jeremy Heron said: “The face of local government is changing and we look to innovative methods of bridging the funding gap whilst being mindful that we continue with our policy of being prudent when investing.

"By a carefully considered investment in residential property we will be able to generate income to support the delivery of council services as well as deliver much needed greater diversity in housing.”

If approved, NFDC would set up a company that would buy, build, hold and manage properties.

Cllr Heron said investment of this kind had proved a successful way to fund services for many other councils.

“Residential property represents a good investment for the council just now because the New Forest has a significant housing shortage and a growing population. Demand for housing in the district continues to increase," Cllr Heron added.

The scheme is separate to the council's housing strategy and Cllr Heron said the authority remains committed to providing council housing and encouraging developers to build affordable homes.

Following discussions at cabinet, the Draft Residential Property Asset Investment Strategy will go to full council on December 11.