TWO former councillors are spearheading a campaign to keep 4,600 homes in Chester-le-Street within the control of the local authority.

The district council has to decide by July on the best options for the management of its housing stock.

There are a number of choices, including the council continuing to own the housing stock and remaining as the landlord.

Another option is a Private Finance Initiative, which would mean forming a separate company and using money from private companies to fund improvements to the housing stock.

A third option is an arm's-length management organisation, forming a not-for-profit company that would manage and maintain the stock and a large scale voluntary transfer. Under this scheme, the council's housing stock would be transferred to a new, not-for-profit, registered social landlord.

George Watson, who previously served on the council, and former Durham county councillor Derek Bates are adamant that the council should retain ownership of the properties.

Mr Watson said: "The provision of social housing is the most important function of the local authority."

He said that if the council sold the homes the tenants would face rent rises and would not be able to turn to councillors for help.

The council says a tenants' conference of 130 people showed 90 per cent support for a total stock transfer.

But Mr Bates and Mr Watson are calling on tenants to support retention of council housing within the local authority's control.

They intend to leaflet every council house as part of a high-profile campaign and are planning to hold a public meeting soon.

The council says it has used interviews, questionnaire surveys, conferences, and newsletters to consult people and says it has gained the views of 20 per cent of its tenants.

A council spokesman said: "The council will consider a wide range of factors to make an informed decision to benefit both tenants and residents across the district.

"If the council decides on the stock transfer option, this option would still require a ballot of all tenants. The council will remain objective when it makes a decision on the future management of its housing stock. The council always seeks to act in the best interest of the wider community and makes decisions grounded on factual information."