A COUNCIL is to apply to transfer its housing stock to a housing association.

The Government has set a 2010 deadline to make all council housing meet a Decent Homes Standard.

Sedgefield Borough Council will have enough resources to meet this minimum, but tenants said they want a higher standard.

Council leader Bob Fleming said: "The council expects to have £55m available over the next ten years and can easily meet the minimum standard.

"But we will need £117m to reach tenants' expectations over the next ten years."

The council has decided that Large Scale Voluntary Transfer is the way forward.

This would enable it to make property improvements and extensive estate and environmental improvements.

It would also provide an opportunity for the council to improve some local services from the finance it will receive from the transfer, as well as supporting wider regeneration in the borough.

The council will apply to the Government's stock transfer list this December and will know if it has been accepted by spring 2004.

Officers say tenants will be extensively involved throughout the process and the final decision on transfer will be taken by them through a formal independent ballot.