Southend on Sea Borough Council will buy properties in a bid to fund housing regeneration.
Councillors have agreed to spend £4.3m buying private homes for use as council housing.
The involves the creation of a revolving investment fund to deliver a pipeline of housing regeneration projects for the town.
It will include new build housing, potential acquisitions and leasing opportunities, such as a private sector leasing scheme along with identifying potential estate refurbishment sites.
The council is creating a capital budget in the HRA to fund the scheme including Right to Buy receipts.
