A COUNCIL has announced that tenants have given overwhelming backing to plans for a company to take over the maintenance of their homes.

Easington District Council said 99 per cent of the tenants who responded to its survey supported the idea of an arms-length management organisation (Almo) being set up.

The council will still own the housing stock, but the company, East Durham Homes, will manage, repair and maintain the properties.

Critics, including public sector unions, said the Government was pressing councils to hand over council housing to the private sector.

They said tenants' support was being won with claims of extra money for improvements becoming available when the Government could fund the work, without new companies being set up.

A council spokesman said that East Durham Homes would start operating on April 1 and be inspected by the Audit Commission six months later.

If it was given a two-star rating, then an extra £117.5m could be available from the Government for the repair and improvement of homes.

Director of housing and public services Alan Caygill said: "The huge percentage of tenants who voted in favour of setting up the Almo confirms the council's approach.

"We will now move forward at a fast pace to make sure East Durham Homes is established and fully operational by April 1, 2004."