Crucial vote on bid to switch ownership of 2,000 homes

The local authority has spent the past few months consulting tenants on proposals which would see their homes transferred to a housing association.

If the move goes ahead, the estimated £12.6m made from the sale could be ploughed back into the administration's coffers.

Government regulations would still prevent Richmondshire District Council embarking on a spending spree, although the authority would have the option of clearing its debts while building a limited number of affordable homes.

However, council tenants have been assured they will also benefit directly from the transfer, as a housing association is more likely to have the cash to cover the cost of repairs and modifications on their homes.

Independent consultants called in to research the pros and cons say the district's council homes are likely to need £11m spending on them over the next 30 years - with an expenditure of £8m necessary over the next five years alone.

The figure would stretch the pocket of the local authority - but not a housing association, which would have the necessary financial resources to meet the cost.

However, research by the same consultants has also indicated almost half of Richmondshire District Council's tenants are opposing the move.

As many as 45 per cent are against the local authority even considering a transfer while a high proportion of the remainder are, at best, lukewarm towards the idea.

But a report tabled when the council's housing committee meets tomorrow evening confirms that the residents will have the final say on the matter in an independent ballot.

Although the consultants' report accepts a vote now would most likely come down against a transfer, it also points out there is time for more consultation.

More talks with tenants would give the council an opportunity to persuade residents that fears of rapid rent increases are unfounded and the advantages of a partnership with a housing association outweigh the disadvantages