BURY'S council houses are in line for an £8 million modernisation boost over the next three years.

The Government says Bury can have the money if it succeeds in creating an Arm's Length Management Organisation (ALMO) to manage its 9,000 homes.

The launch of the ALMO, called Six Town Housing, depends on Bury's housing services gaining a "two star" rating from the Audit Commission.

Bosses hope that the ALMO will bring in £27 million to bring all houses up to the "decent homes standard" by 2010. They say that the Government's promise of £8.64 million for 2005-07 is a sign that it will ultimately receive the full allocation.

The council has carried out a mock inspection of services, which gave it a "one star, promising" rating. Housing bosses are confident that they can gain two stars in a year's time, with improvements starting in January 2006.

Councillor Steve Perkins, executive member for regeneration and housing, said: "The announcement is a great boost for tenants across the borough, giving the green light for the first stage of what will be the biggest programme of investment in housing stock ever undertaken in the borough. The amount of cash also suggests that we are on course to get all the money we need to complete the work by 2010 through Six Town Housing."