The sale of two former council homes today by the London Borough of Southwark is expected to draw in big bidders - and the cash will be plowed back into building new council properties.

The 200-year-old “Take Courage” building near Borough Market is set to sell for more than £2.3million at auction, according to Savills Auctions, which believes the property will be “the most expensive council home ever sold”.

Southwark Council took possession of the building on Park Street in the wake of the dissolution of the Greater London Council in 1986, and since has put it to use as part of his housing stock.

But now, high refurbishment costs and a need for council homes have promped the council to sell off the property - which is currently vacant - to help fund new developments.

Cllr Fiona Colley, cabinet member for regeneration, said: “The costs of repair and refurbishment, coupled with the sale price mean that selling this building was always the best option.

“The receipt will contribute to our new 11,000 council house building programme.”

The “Take Courage” advertising paint on the side of the building dates back from the 19th Century, when it was thought to house bosses of the Anchor Brewery.

Savills head of auctions Chris Coleman-Smith said, “We think this will be the most expensive council home ever sold, and we’re delighted that the proceeds of sale will contribute to creating more housing in the borough.”