WINCHESTER civic chiefs have agreed to set up a new housing company to meet an emerging need.

The company will offer homes at market rent but on secure tenancies, addressing the growing uncertainty in the local market.

It will aim to house young professionals such as nurses and teachers, who are not on the council waiting list.

The first properties leased by the new company will be the 41 flats being built on Winnall Manor Road.

Cabinet member Cllr Paula Ferguson said Winchester was seeing a shortage of good quality long-term housing.

Many landlords are moving out of the rental market in favour of selling the properties, the Cabinet meeting heard.

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Cllr Ferguson said: "It will be a wholly-owned housing company that will allow the city council to address a need in the housing market, the shortage of longer-term rental property, well-designed and energy efficient. Our tenants can be assured they are not going to have to move out because the landlord wants to increase the rent or take it back to sell.

"Winchester has some of the most expensive housing in the country, not just buying, but renting. There is a particular shortage of high-quality affordable housing for rent. A wholly-owned housing company would allow us to meet that need."

Council leader Martin Tod said: "There is a gap in what is on offer in Winchester. Professionally-managed market rent houses don't exist. Having this in our armouty ensure the right offer, starting in Winnall but moving right across the district is an exciting opportunity."

Cllr Tod stressed that these houses were extra to, and not a replacement for traditional council houses.

The move has cross-support, with the Conservatives when in control of the city council also working on setting up such a company.

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Cllr Caroline Horrill, Conservative group leader, said she was delighted by the decision: "It is important to have such a vehicle available to us."

Cllr Kelsie Learney, Cabinet member for climate emergency, said: "There is a real shortage of quality rental property in Winchester for young professionals. Joining the housing register is not appropriate for many of them. They cannot commit to spending the rest of their lives in Winchester. Long-term rental isn't always right."

The city council has a policy of building 1,000 new council homes between 2021 to 2030.

Cabinet on the Lib Dem council agreed to set up the company.