Coventry City Council has become the latest local authority to decide to dabble in the property market — not just as owners, but as developers.

The council's cabinet is recommended to approve buying a 3-acre site at Edgwick Park. Existing owners Wigley Group have permission to demolish the existing buildings and replace them with units totalling 65K SF.

Local councils have been spending furiously on property, inspired by the low rates of interest charged on their borrowings, and the prospect of securing long-term income to replace reduced government funding. The latest figures suggest inter-authority lending — often the cheapest way to raise funds — is now above £10B a quarter, much of it to fund property transactions.

Local authorities invested £3.8B into property between 2013 and 2017, according to data from retail property body Revo and agency Carter Jonas.

However, investment comes with downside risks: in the case of some councils, who own shopping centres, the closure of House of Fraser anchor stores spells trouble.

According to official paperwork the Coventry site could be combined with other council land holdings to create a larger scheme.

"Edgwick Point would complement other industrial units the council owns in the immediate area, namely Little Heath and Lythalls Lane," the report said. "The sizes of the proposed units are generally larger than those the council currently owns. This therefore provides the opportunity for business to continue to grow and expand from within the council's portfolio."

The council will also buy 6.2K SF of office and workshop space at Wheler Road, Coventry.