THOUSANDS of local authority tenants will this week be consulted on a proposed housing shake-up designed to improve the quality of their homes.

Residents living in Wear Valley District Council houses will be asked how they want their homes to be managed in the future.

The council says that unless it changes the way housing stock is managed it cannot afford to pay for work needed to bring its 5,400 homes up to the Government's Decent Home Standard by 2010.

After the first round of consultation with tenants' associations and residents' groups proved inconclusive, the council decided to put the issue out for further debate.

Tenants will be offered two choices. Large Scale Voluntary Transfer would see all council houses transferred to a new or existing Housing Association, which could access new funds for improvements.

A ballot of all tenants would have to be held, with a 51 per cent turnout and a majority in acceptance, before this could be implemented.

An Arms Length Management Organisation, a company set up by the district council solely to manage housing stock, is the second option.

This would mean the council still owned the homes but an independent management company could seek extra cash to meet the standards.

Though a ballot would not be needed to adopt this policy the council has vowed to continue consultation with tenants.

This week each council household will be sent a questionnaire, the results of which will form an integral part of the planning and decision process for the future management of the council's housing.

The decision to place two, out of a possible four, options on the survey has been criticised by Norman Button, secretary of Woodhouse Close Estate Residents' Group in Bishop Auckland.

He said: "Officially there are four options, including a private initiative and the council keeping all stock, I want tenants to be asked if they want to stay with the council.

"How can they make an opinion unless all this information is presented together?"