A COUNCIL can continue its aim of transferring its housing stock to a registered social landlord after overcoming the latest hurdle.

Sedgefield Borough Council hopes to transfer ownership and management of its 8,500 homes to a not-for-profit housing association.

But the authority, along with six other district councils and the county council, will be replaced in April 2009 by a single unitary authority.

It therefore required the consent of a committee set up to oversee the transition to a new council to progress any further with the proposal.

The implementation executive, which is made up of senior members of all eight existing authorities, met at County Hall last Friday to discuss the proposal.

Members agreed to back Sedgefield Borough Council's plans so it can press ahead with a tenants' ballot later this year.

Stuart Crowe, county treasurer, said: "There is a process in place to ensure that all the existing councils can do their business as usual but some decisions, such as disposal of assets, has to come through county."

Following last Friday's decision, the council will issue tenants with information about what the two different options would mean in terms of investment and services.

A spokesman said: "In the next couple of weeks, we will be issuing offer documents to all tenants in the borough. We'll then move to the next stage of public consultation, consider the feedback and probably hold a ballot in summer when tenants vote for what they want."

Residents rejected a similar proposal three years ago when the council wanted to transfer homes to a new organisation created by the council and Sunderland Housing Group.

This time it is proposing to form a not-for-profit housing association called Sedgefield Borough Homes that would be staffed by the same workforce that tenants are familiar with.

The council says the move would lead to a multi-million pound investment in homes, services and neighbourhoods.

It says the council could meet the minimum homes standard set by the Government but tenants' aspirations for their homes and estate would require an extra £65m over five years which a standalone organisation would have access to.