COUNCIL chiefs are to consider future options for Lancaster's council houses after discovering a £22 million shortfall to keep them in prime condition in the future.

The shortfall has been identified as the council prepares a 30-year business plan for its housing revenue account.

The financial problems of bringing all houses up to a 'decent standard' by 2010 is being made worse by the loss of income caused by growing numbers of empty properties.

A cabinet meeting next Tuesday will discuss the possibility of employing consultants to look at the different options, at a cost of £20,000.

Options open to the council include transferring the entire housing stock to a 'large scale voluntary trust' (LSVT), such as a housing association.

Similar transfers have already been made by five Lancashire councils, and may involve a ballot of tenants.

The scheme is backed by the Government which expects that, by 2005, more than 50 per cent of social housing will be owned by registered social landlords or housing companies.

The council is also being asked to consider an 'arms length management organisation' which would allow it to secure additional borrowing to fund the improvements or to go for a 'private finance initiative' which would see a private sector partner fund the improvements but take over the management of the homes for 25 to 30 years.

Other options open to the cabinet include transferring vacant properties to housing associations or selling them on the open market.

In a report, councillors are told: "Given the long term difficulties in funding the HRA Capital Programme, the council will need to consider whether or not alternative approaches such as those listed offer a better opportunity of ensuring that our tenants can continue to live in well maintained homes."