A consultation exercise begins this week to explain how a multi-million pound investment will help council house tenants.

Redcar and Cleveland Borough Council owns 12,000 homes in the area and hopes to transfer the care and maintenance of its housing stock to a non-profit-making organisation.

The council says the new company would be able to apply for money and grants, which it is unable to do.

The move has been prompted because the council believes there is a massive shortfall in investment in the homes - with most lacking facilities such as central heating.

Yesterday, a touring caravan made the first stop in a 36-date tour of east Cleveland, aimed at giving information to tenants on the proposed changes to council house.

It pulled up in Liverton Mines with Redcar and Cleveland mayor, Vilma Collins, and Councillor Barbara Bowater, lead councillor for housing, on board.

If tenants vote in favour of the switch, the new organisation, which would be called Coast and Country Housing, would allow an investment of £155m for improvements in the first five years, and a further £415m of investment over the life of the 30-year company.

Over the next couple of weeks, a team of 60 volunteers will call at each council property to answer any questions or concerns.

The council says the information blitz, carried out under strict Government guidelines, is to give tenants all the information needed to vote in a ballot this summer.

Iain Sim, director of housing with the council, said: "We have now begun the formal consultation stage. We are in the process of sending every tenant the 40-page offer document, a newsletter that includes a summary, there will be a ten-minute video and we've organised the caravan tour and the door-knocking."

Eric Barton, from the council's transfer team, said the first informal feedback from tenants concerning the move had been positive.