COUNCILLORS have set the ball rolling on the possible sell-off of all 3,900 council houses in Hyndburn.

But no decisions can be made without the support of the majority of tenants who will have the final say in a secret ballot.

They are now to be consulted on transferring the ownership and management of their homes to a new housing company.

Unlike the council, a new landlord would be able to borrow money for repairs and improvements.

Councillors on the policy and resources committee stressed that both the council and tenants would have a significant stake on the board of the proposed new company, managed in partnership with a housing association.

The council estimates £35 million is needed over the next ten years for repairs maintenance and improvements to its housing stock across the borough, money the council does not have.

Unlike the council, a new landlord would be able to borrow money for repairs and refurbishment.

Councillor Sheelagh Delaney said the council was not seeking to "get shut" of its houses, it was trying to secure the investment needed to bring them up to a standard tenants wanted. She added: "We are not saying that stock will be transferred. We are saying to tenants this may be a way to get this money and that it is your choice."

Coun Peter Britcliffe said the big fear of tenants was rent rises a year or two down the road.

Housing chairman coun Clifford Westell said: "Fundamentally I am against it, but we have to ask what's best for tenants.

"Stock transfer might not be the best way but it's the only way. It's Hobson's choice."

Head of housing Gwyneth Sarkar said: "The decision has only been taken in light of changes in legislation which allows the council to be a continuing and significant partner in that new company.

"It is a complicated process and the council would have no wish to rush tenants into being asked to make a decision and it is likely the whole process would take at least 18 months."

The same meeting agreed that a one-off £5 million windfall to tackle housing disrepair should be spent on the worst housing in the private sector.

The money from the sale of council houses is being released by the Government as extra borrowing approval over the next five years.

The first slice would go to accelerate block repair schemes in the Scaitcliffe renewal area, Accrington.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.