THE findings of two groups set up to consider the best option for the future of Sedgefield Borough Council's housing stock will be reported to members this week.

The council has to consider a different way of managing its 10,000 houses so it can access funds to improve the condition of the stock.

All houses must achieve the Government's Decent Homes target by the year 2010, which will cost £25.5m in Sedgefield borough.

Sedgefield wants its houses to be better than that minimum standard, but this asset management approach would cost £116m over ten years and £287m over the next 30 years.

The council said the difference of approach can be explained by the example of a kitchen refurbishment.

The Decent Homes standard may only mean the replacement of a worktop and a couple of units, but asset management could require the replacement of the whole kitchen.

This approach would leave the council with a cash shortfall of up to £62m by the end of 2013.

The council established two groups to look at the various options available, both of which included tenant participation, and established a points scoring system for each.

The large scale voluntary transfer option came out top with both groups.

That would involve transferring ownership of council houses to a housing association, which could then borrow the money for investment.

The other options, which included the council retaining ownership, setting up an arm's length management company, or introducing a Private Finance Initiative (PFI), scored much lower.

The findings will be discussed at a scrutiny committee meeting tomorrow.

They will then go before the cabinet, ahead of a full council meeting next month to determine the favoured option.