Bath and North East Somerset's first council homes for more than 20 years will welcome their first residents this winter, with priority given to people who work in the NHS in Newbridge ward.

The seven council flats at 117 Newbridge Hill in Bath will be the first of 58 homes to be delivered in the council's first phase of council house-building.

Councillor Tom Davies, cabinet member for council house building, said: "We have got aspirations to do hundreds of council houses if needed, thousands in due course."

The flats will be advertised through Homesearch, the council's housing portal, and a local lettings policy will give priority to people who work in the NHS in the Newbridge ward, an area which includes the Royal United Hospital.

Mr Davies said: "One of the biggest challenges is the affordability of housing. We have one of the largest differentials between average earnings and house prices in the country.

"It is something that I and the party feel really passionate about."

117 Newbridge Hill is a Victorian villa previously used as council offices. It has been extensively renovated and converted into five one-bedroom apartments and two two-bedroom apartments by the council's wholly-owned building company Aequus, working with local contractors H Mealing & Sons, and local architects Mitchell Eley Gould.

Mr Davies called it "a good quality piece of work using local contractors."

He explained: "The first phase that we were looking at was to use council owned assets that the council did not need any more and use these as the first council homes."

The council sold 117 Newbridge Hill to Aequus last year in order for them to carry out the works. This was challenged at the time because the property was sold for £308,000, nearly £500,000 less than its market value. The council are buying the building back for £2.162 million, a figure determined by a red book valuation.

Mr Davies said: "As the building had already been sold to Aequus, and Aequus is not a Registered Provider of Social Housing, the only practical route was to repurchase the building. Both the original sale and purchase prices were set by independent valuers. 

"However, it is important to note that significant building works have been undertaken on the building by Aequus, which was in very poor condition, and any profit from the scheme would flow back to the Council in the form of dividends. The Council receives £1m return annually from Aequus which is used to support front line Council services."

Some final work is being carried out and the building is expected to be transferred back into council ownership shortly.

Mr Davies added: "This is a busy time in the council's new housing programme. In September's planning committee, the committee approved a scheme of 8 homes on Argyle Works on the Lower Bristol Road, which will also be let for social rent as part of the Council's social housing programme.

"The planning application received many positive comments from councillors on the committee. September also saw us start work on two temporary accommodation schemes in Crescent Gardens Lodge and Theobold House, Bath."

117 Newbridge Hill will be the first council-owned social housing in Bath and North East Somerset since 1999, when the newly-created unitary authority transferred its housing stock out of council ownership.