COUNCILS who signed up to a six-year relocation scheme have denied that cash incentives have been offered to persuade tenants to move to the North-East.

Reports yesterday claimed that people on the council waiting lists in the overcrowded South-East were being offered £2,000 and removal costs to settle in the Easington District Council area of County Durham.

The Surrey authority linked in the report to the cash claim - Reigate and Banstead Borough Council - said that while relocation expenses would normally be paid, no families have ever been given money to move.

Along with other South-Eastern authorities, Reigate and Banstead joined the London Authorities West and North (Lawn) scheme in 1998, which aims to balance demands for council properties across the country.

At least two local authorities in the North-East, Easington and Wear Valley, have been among those involved in the Lawn scheme.

Over the six years of the life of the scheme, only 50 people have taken up the chance to move to the Easington district.

Reigate and Banstead yesterday also confirmed that while they were putting forward the Lawn scheme as an option to the 1,100 people on its waiting list, it was just one of its initiatives.

Councillor Lynne Hack, executive member for the authority's housing, said: "The families are moving because they want to. They are not given money as an incentive to move and they have a choice of locations.''

An Easington council spokeswoman said the authority had joined Lawn in 1998 when there were a large number of empty council homes in the district.

"We are a district that welcomes people with open arms and we have lettable properties. However, the housing market has moved on and we have waiting lists for every council ward.''

Under the Housing Act the council must give priority to people from the district who need housing, she said.