Council will form local housing company with private firm to build units for sale and rent on 20 sites

Sheffield city council is to form a local housing company (LHC) to help build around 2,500 homes in the next 10-15 years.

The council will provide the land for the joint venture, which will build a mix of units for rent and sale, while the preferred bidder will come up with the cash. Profit and risk will be shared equally between the council and the private firm.

About 60ha of land has been earmarked for development over 20 sites, most of which are ready for development. Plans to regenerate neighbourhood centres have also been mooted.

Sheffield council will invite shortlisted candidates to participate in a competitive dialogue, with the procurement process expected to last about 16 months.

Bob McCann, the council's cabinet member for housing and safer, sustainable communities called the project a “milestone”.

He said: “We want to attract bids from the leading private sector partners as it is essential that we get the plans right and in accordance with what local communities want to see in their area.

“We are not just looking for someone to build homes, but a partner who can work with us to create places where people want to live.”

The council will hold a bidders' conference on 13 February.