THE ownership of 35,000 council homes is likely to remain with a city council.

A report before next week's Newcastle City Council cabinet meeting recommends further investigation into two options which both involve the authority retaining ownership.

During the past two years a review has considered a further four options, but councillors will be asked on June 19 to agree that they are not viable and should not be considered further.

Councillor Ruth Robson, cabinet member for housing and regeneration, said: "The final decision taken by the council will be the one best for tenants, the authority and staff.

"Newcastle City Council is at a very critical stage in deciding how we can provide our tenants with a service they deserve and which is fitting for the 21st Century."

The cabinet will be asked to agree that officers investigate retaining ownership and continue as present, or set up a management organisation which would also allow the council to own the homes.

The second option would give the council chance to secure an extra £160m through Government subsidy.