AN attempt to transfer 2,000 council homes in Richmondshire to a housing association has been shelved.

A full meeting of the local authority last week ratified a vote by the housing committee to abandon consultation on the project after an initial survey showed almost half the district's tenants opposed the idea with many of the remainder little more than ambivalent.

The move could have raised more than £12m for Richmondshire District Council - although Government guidelines would have prevented the authority from embarking on a spending spree.

Much of the cash would have been used to clear debts while the remainder would have been locked in the council's reserves.

Proceeding with phase two of a complex consultation exercise could have cost the authority as much as £300,000.

The council would not have been able to recoup the cash if at the end of the exercise the tenants then voted for the status quo.

Housing chairman Coun John Gill said: "I would much rather see that money invested in our council houses."

In a separate move the Tees Valley Housing Group has been awarded a £2m contract to build almost 40 homes in Skeeby, Brompton-on-Swale, Colburn and Richmond.

The Middlesbrough-based group's chief executive, Alison Thain, said: "The group has much to offer in terms of our experience and we welcome the opportunity to establish a presence in the district and build a long-term relationship with the council."

The authority's housing manager, Colin Dales, said: "We wanted to develop a co-ordinated approach to our community housing programme across the district.

"To ensure we achieved this, we decided it would be best to work in partnership with a single developer throughout the council's area so we can provide a high-quality housing solution for as many local people as possible.