The company would simultaneously act as a high quality, commercial and private landlord, as well as employing schemes and projects such as developing new starter homes, Rent-to-Buy properties and shared ownership arrangements.

‘Rent to Buy’ properties can be bought by their tenants at a discounted price after a certain amount of time, financed by the property’s increased value and an equity contribution collected throughout the rental period.

Construction employment for local companies and their trainees would be maximised by the city council. Any profits made by the company will be recycled straight back into the community to support wider council services.

Mayor of Liverpool, Joe Anderson, said: “We have done an awful lot to increase the range and choice of housing in the city over the last few years by working with housing associations and developers, as well as through our innovative Homes for a Pound scheme.”

“This is an opportunity to use our knowledge and land to build properties which boosts employment, while at the same time helping people into their first home.”

Cllr Frank Hont, cabinet member for housing, said: “This is not a return to the days of the council being a social landlord providing mass housing. The company will operate commercially but be very focused on social value and social responsibility and won’t compete with housing associations.”

The company could also buy up and refurbish empty housing to support poorer areas where the property market is unsteady and struggling.