PLANS for a Hampshire council to set up a housing development company have moved forward after city bosses gave it the green light.

Labour Southampton City Council bosses want to create the commercial property arm so they can plough on with creating new housing developments and create new sources of cash income from sales and rent.

The new company could fund some projects through borrowing and some through one-off cash investments from the Government.

Some housing sites could be kept on as council homes while others and commercial sites could be rented out or sold.

The Conservative opposition have said that the plans will not deliver the estate regeneration plan which the city needs.

On Tuesday night, the council’s Cabinet agreed to spend £250,000 on hiring consultants to go over the details of setting up the company and getting it up and running by the end of the