HOUSE hunters on Burnley Council's waiting lists were today urged to grab a home before rents soar.

People are being encouraged to beat the January 31 transfer deadline when every council property in town is handed over to the new Burnley and Padiham Housing Company - and rents to new tenants jump 20 per cent at a stroke.

That will mean an average weekly rent rise of £9.20 and as much as £16-a-week for top-of-the-range council houses for everyone who signs up after that date.

In addition, new tenants won't qualify for the 60 per cent maximum discount on the value of a house now offered to existing tenants exercising the right to buy.

They will instead qualify only for a fixed cash discount - which in many cases will be far less than the deal now available.

Around 700 Burnley council houses change hands every year so the 20 per cent hike will be a major factor for many.

New council tenants will also miss out year-on-year if the company, as expected, implements its declared policy of rent rises of inflation plus one per cent to all tenants - with the rise higher in cash terms when levied on a higher figure.

An inflation plus one per cent overall increase for all tenants early next year means people moving in after the deadline could see an increase of more than 23 per cent on present prices.

They will be stung by the 20 per cent rent hike and diminshed purchase rights no matter how long they have lived in town or how long they have been on the council waiting list. And there will be no preferential deals for the sons and daughters of council house tenants who may have lived in a municipal property all their lives - they too face an immediate 20 per cent rent increase if they fly the nest and get their own council house after January 31.

It all adds up to now being the time to move in, said housing managers.

Council boss Ian Saville, who has been appointed chief executive of the new company, said houses were available to let in Burnley and people would be encouraged to take them on before transfer which would hopefully be on January 31 or by March 31 at the latest.

"If there was demand, I am sure we could do something to help people wherever possible," said Mr Saville.

There was nothing, either, to stop people opting for a home in a second-choice area if none was available on their preferred estate, he added.

"If you add all the factors up, there could be sizeable benefits to getting a council home before transfer," he said.

Paying off the mortgage early on all Burnley's 5,300 council houses will cost millions - but hopefully the Government and not council taxpayers will pick up the tab.

The town aims to clear its debt when the houses are transferred from council ownership to the new Burnley and Padiham Housing company.

But early redemption will trigger an extra charge of £6.2 million, says Mr Saville.

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