North Shropshire District Council agreed the unprecedented move at a meeting on Wednesday.

It is hoped the Community Asset Trust (CAT) will help regenerate the area and provide more affordable homes.

The group will be independent from the council and run by a board of nine unpaid directors.

It's better for the people of north Shropshire that their assets and the proceeds of the sale of the council houses are safeguarded Council leader David Minnery

North Shropshire is one of five district and borough councils set to be scrapped to make way for a unitary authority in Shropshire by 2009.

Leader David Minnery said the move, thought to be the first of its kind in the country, was the best way of ensuring assets were used for the benefit of people in north Shropshire.

But he denied the planned unitary council had influenced the decision.

Improve facilities

"My opinion is it's better for the people of north Shropshire that their assets and the proceeds of the sale of the council houses are safeguarded for the people of north Shropshire and not anywhere else," he said.

The CAT should also help to improve recreational and public health facilities, supporters say.

Three of its directors will be nominated by the council, three from the business world and three from the community.

It is hoped to be running by the end of 2007.