SWEEPING changes that could unlock £175m to regenerate 35,000 council houses will be proposed tomorrow.

Proposals for an outside body to run council housing stock are to come before Newcastle City Council's cabinet.

Councillor Ruth Robson, cabinet member for housing and regeneration, will recommend the authority sets up an arms-length management organisation - allowing the council to continue as owners of the properties, but would set up a company to oversee their day-to-day management.

It would also open the door to up to £5,000 extra Government funding per property, to help improve housing in order to meet the Government's Decent Homes Standard by 2010.