A ROW is brewing over plans to transfer thousands of council homes to a private landlord.

Sedgefield Borough Council, in County Durham, wants to transfer 8,500 properties to a registered social landlord. It says the deal would unlock millions of pounds in investment.

But Great Aycliffe town councillors have raised concerns about the scheme and are considering a judicial review.

Ultimately, the action could see the end of the borough council’s plan to transfer its housing stock to the newly-formed and independent Sedgefield Borough Homes.

Town councillors are debating whether or not the costly and lengthy procedure is in the public interest and, if it is, whether such a challenge is financially viable.

Town council leader Bob Fleming said the problem centred on the transfer of Aycliffe’s green areas and open spaces.

He is concerned that if they are transferred to a housing company with no assets, they could eventually be used for development.

Councillor Fleming said: “We have seen the plans, after requesting them under the Freedom of Information Act, so we have only just found out what they want.”

He said that, on closer inspection, there were “other alarm bells ringing”.

The town council has requested information about the conditions offered to Sedgefield Borough Housing under the transfer, which is supposed to take place in April.

Currently, the borough council gives 75 per cent of the money from tenants who opt to buy their council house to central Government.

This could be retained following a transfer. This, and being outside Government subsidy rules and allowed to borrow, was key in the borough council’s promise to deliver £100m in investment within five years.

However, in 2005, two other social landlords approached the council.

They offered £27.5m and £24m for the housing stock, as well as promising to invest.

Following a vote, neither of the deals received public support.

Coun Fleming said the proposed judicial review would be debated at a meeting of the town council tomorrow evening.

The Northern Echo approached Sedgefield Borough Council for a comment, but the authority did not respond.