A council has planned to invest £2m into a former Royal Mail building to provide homes, retail and exhibition space.

North Devon Council said it was in the process of purchasing the property in Ilfracombe High Street using part of its allocation of nearly £3m from the Devon and Torbay devolution deal.

The council applied for consent from its own planning department to convert the former delivery office which was built in 1910.

The remaining funds from the deal have been used to buy two former bedsits in Ilfracombe for renovation, according to local councillors, the Local Democracy Reporting Service said.

The planning application for the delivery office building said: “While not listed, the building is of local historic interest and sits within the Ilfracombe Conservation Area and the High Street Character Zone, contributing to the street scene’s architectural continuity and historic grain.”

It added existing accommodation on the second and third floors was in need of renovation and would be upgraded, while underused parts of the building would be brought back into use.

Eight homes are proposed for the upper floors.

The application said the former sorting office overseer’s room and the safe room would be kept on the ground floor to be used for flexible shop and exhibition spaces.

The council said it intended to improve the condition of the building, enhance commercial and community use, bring in more energy efficient measures, including solar panels, and provide much needed homes.

North Devon Council said it was conducting a pilot project to see if intervening in the Ilfracombe housing market would help improve the standard of existing low-quality homes.