A COUNCIL is preparing to transfer its entire stock of 13,000 local authority houses to a new landlord.

While tenants will have the right to vote on the move, Middlesbrough Council says there is no alternative.

The council says it cannot afford the £148m it needs to upgrade its estates over the next decade; it has estimated the bill could increase to £481m over the next 30 years.

Project manager Brenda Kirby said: "This is far more than the council can afford on its own.

"Middlesbrough has always invested as much as it could in its housing, but it cannot borrow enough money to ensure all homes are repaired and modernised to the standards which it, and council tenants, expect.''

It is claimed the new managers - a non-profit-making trust made up of tenants, councillors and independent members, regulated by the Housing Corporation - would have greater freedom to borrow to invest in maintenance and modernisation.

Executive member of the council, Councillor Mike Carr, said: "The Government requires us to bring the houses up to a decent standard by 2010, an obligation on all local authorities. But, as a local authority, we are subject to Government restrictions on borrowing.

"We want to ensure we have decent, good-quality housing with a good environment. The only way to achieve that is through a different financial mechanism.

"We are not selling them off; no-one will make a profit out of this. There are no shareholders; there will be a capital receipt but it will not be enough to pay off the whole of the debt," added Coun Carr.

Tenants are invited to an informal information session at the St Mary's Centre, Middlesbrough, tomorrow.

It is hoped a management board will be in place by Christmas with the ballot held next summer and, in the case of a yes vote, the transfer going through in February, 2004.

About 400 housing staff employed by the council would transfer to the new organisation.

The transfer will not affect housing benefit payments or the right to buy.