THE future of council housing in Pendle will be explored by a new working group made up of councillors and tenants.

The Government has asked all councils who still have their own housing stock to look at options for the future, which could include Private Finance Initiative projects, arms length management, transferring the homes or retaining control.

The council has until 2005 to complete its assessment and must then seek government approval for its final decision.

Councillor David Clegg, executive member for housing, said: "We can be proud in Pendle of the way we have managed our housing stock over the years.

"Tenants are happy with the service they receive and the houses are in good condition."