PLANS to hand control of Preston's council houses to a private landlord are being considered by the town's councillors.

And, if tenants agree, the borough council could hand over its entire stock of 7,800 houses and flats to a non-profit making association -- a move that would release £46 million, currently earmarked for repairs to the properties.

Councillors will decide on the issue at the next meeting of the tenant liaison forum.

Then a ballot of tenants is expected to start in June 2002 which could see the hand-over by April 2003.

However the Liberal Democrat spokesperson on housing, Councillor Mick Moulding, believes 500 jobs within Preston Borough Council's works department could be on the line if the plans get the go-ahead.

He said: "There's no doubt in my mind that if we transfer the council's housing stock there will be job losses.

"Not only that, I also believe that the conditions of employment would no doubt change for workers -- which is unfortunate as Preston council is a good employer."

"I think workers would rather stay with the council than work for a private housing company."

A council report drafted by Peter Deacon, Preston's director of housing services, states: "Staff working part-time on housing or other works department functions would be likely to need some substantial reorganisation and review".