Bath and North East Somerset Council's building company has struck a deal to build hundreds of homes over the border.

Aequus is being drafted in by South Gloucestershire Council to provide "higher than market standard" housing on its land, where at least a third of the properties are affordable.

The first site in the potential development pipeline to come forward will be at Malmains Drive in Frenchay, where 30 homes are planned.

BANES Council leader Kevin Guy is set to sign off next month on the acquisition and development of the land by Aequus "in line with the approved planning application to be funded by a commercial development loan from South Gloucestershire Council".

He will also approve providing seven flats at 117 Newbridge Hill in Bath rather than the agreed six-apartment scheme.

Councillor Tom Davies, the cabinet member for adults and council house building, said Aequus is currently preparing a business case for the site in South Gloucestershire and he could not comment further.

South Gloucestershire Council decided against setting up its own housing company but proceed with joint venture partnerships to build homes on its land. It will share the profits with Aequus.

Speaking in July, Councillor Rachael Hunt, the authority's cabinet member for communities and local place, said: "It's great to see we are continuing our efforts around joint ventures, giving us greater input and influence to support our goals around community shaping without over-exposing the council and taxpayers' money to unnecessary risk."

Wholly owned by BANES Council, Aequus was set up to develop, deliver, own and manage property for both the rental and home owner's market. It has previously converted a Keynsham office block into 95 flats and is set to create new council houses.

The Malmains Drive site is awaiting planning permission. The building company is also set to build homes in Emersons Green, Thornbury, Filton and Warmley, subject to planning permission and full business cases.