A MAJOR shake-up is planned for the management of Redcar and Cleveland's council houses.

In a scheme affecting more than 15,000 tenants, the borough council proposes to transfer ownership and management of its 12,000 houses to a new 'not-for-profit', independent housing organisation.

The proposal has come about because the council is subject to strict Government rules about how much it can borrow and spend. The new company would not be subject to the same restrictions and could borrow cash to make much-needed improvements and keep rents affordable.

But the council said the scheme will only get the go ahead if the tenants agree to it and yesterday it launched a massive consultation exercise with residents.

The council said it is concerned about the wrong messages being sent out to residents - particularly elderly people who may be afraid they are going to lose their homes. It hopes its information crusade will encourage tenants to exercise their vote next spring when a decision whether to go ahead with the scheme will be made.

The new organisation would be independent from the council and have an unpaid, voluntary, management board of five tenant representatives, five local councillors and five independent experts. The company would also be regulated by the Housing Corporation, the Government watchdog.

Iain Sim, director of housing and direct services, said there were many benefits to tenants including low rents, a comprehensive programme of repairs and modernisation and protection of tenants rights.

Tenants will take part in a secret three week ballot early next year and if the tenants agree to the proposals, the company could have control of the houses by December next year