West Oxfordshire District Council plans to take advantage of the property market slump by investing a further £8m in commercial premises.

Councillors have backed plans to set aside the money as part of the district’s capital programme.

Council leader Barry Norton said due to the current economic climate, property now offered the best returns on investments.

He said: “Now is a good time to buy if you have the money to do so and by investing wisely at this time we hope to make some good returns.

“By earmarking that £8m ahead of time, it means that we don’t have to call a full cabinet meeting whenever we want to invest.

“We have lost out on one or two decent properties in the past because it’s taken too long to call all 49 members of the council together.

“Ideally the properties will be in Oxfordshire and West Oxfordshire.

“But if it’s the right investment and it offers a good return then we would look further afield.”

He added returns from bank deposits and income from property rental had historically been similar, but deposits now returned much less than rental income.

The district council first ventured into property investment in July 2008, when it purchased a three-storey office block in Between Towns Road, in Oxford, which it rents to Oxfordshire County Council.

It paid £5.5m for the site, and Mr Norton said it was a good example of the investment the council was looking for.

Spending the full £8m will almost double the value of its current property portfolio.

Mr Norton added: “It’s the interest on our investments that helps us to keep our council tax low. If we weren’t investing it like this then council tax would be a good 30 to 40 per cent higher.”