Two dilapidated properties are to be turned into affordable homes that can be rented by local people.
The properties, 1-3 Angerstein Road, are owned by Portsmouth City Council. They were once used by a domestic abuse charity, but have been vacant for months and were at risk of falling into disrepair.
But now, they are to be handed to a local organisation who will be able to renovate them and convert them into modern flats or houses, depending on what local people need.
The decision to carry out the handover was made by Portsmouth City Council's Cabinet Member for Resources, Cllr Jeanette Smith.
The premises will be transferred, at a peppercorn rent, to Portsmouth Community Housing Trust, a new group focused on providing homes for local people at a social rent level they can afford.
Cllr Smith said: "It's a priority for the council to make sure there are more good quality homes that local people can afford. The plan for the Angerstein Road properties is a chance to provide some new housing in an imaginative way, without any extra outlay from the council."
Cllr Darren Sanders, the council's Cabinet Member for Housing, said: "People across the city want the council to use empty properties for those who need homes. Community-led housing has worked elsewhere and I know it will work here."
Canon Bob White, the chair of Portsmouth Community Housing Trust, said: "We are delighted at this opportunity to develop these properties and help restore them to offer housing to those most in need in our city. The Housing Trust is a new charity which seeks to serve those in need of housing in our community and we hope these two properties will be the first of many."