A local authority is to create a new social enterprise in an effort to develop a more effective management model for its housing stock.
Brighton & Hove City Council intends to lease 499 homes to Brighton & Hove Seaside Community Homes, which will be formed by the council – but the local authority will retain ownership.
The council hopes the new independent company will be able to access £45m in outside investment. It believes it will be the first council to lease homes to a social enterprise.
A council spokesman said the new business would have many of the benefits of a housing association, but the council would retain ownership of the property, and the council and tenants would each have four out of 12 seats on the company's board.
The board structure is intended to increase accountability to tenants and councillors, and is intended to prevent the possibility of inflated salary increases for chief executives and other directors.
The plan is subject to further scrutiny by councillors before it can be given the green light, but has attracted cross-party support.