Bolton Council has been given permission to give away its 18,500 council houses — weeks after a deal looked dead.

Housing minister John Healey yesterday announced to the house of Commons that Bolton was one of six local authorities which can now start the process of transfering housing stock to stand-alone housing associations, potentially unlocking millions of pounds of investment in properties.

But before the stock transfer, to a remodelled and more independent Bolton at Home, can go ahead, tenants have to be balloted and give the proposals the green light.

A wholesale stock transfer means the new housing association will have access to funding not available to the council.

The shock news comes weeks after the deal looked dead in the water, which prompted fears that without the stock transfer, 1,000 homes each year would slip below the national decent homes standard.

The sticking point appeared to be the Government’s reluctance to cancel millions of pounds worth of historic housing debt, but it is understood that a deal has now been struck.

Bolton Council had previously admitted that without being given permission to get rid of its housing stock it would struggle to meet the level of investment needed to keep homes in a liveable condition.

From March, 2011, the budget available for the repair and modernisation programme will be cut from £25 million to about £13 million.

Last night, council leader Cllr Cliff Morris stressed that the final decision would be made by tenants.

He said: “It is excellent news for Bolton and I am pleased with the announcement, but we have to remember these are people’s homes and they have to decide.

“We are trying to get the best deal for them and if they vote in favour of this then great, it will go ahead.”

Liberal Democrat leader Cllr Roger Hayes said he was delighted with the announcement.

He said: “It is excellent news for Bolton and I hope we can now make sure it goes through.

“I hope we can also go through with the transforming estates programme, building new houses on existing estates because that is what we need.”

The council’s executive will make a decision on whether to go ahead with the consultation and tenant ballot at its meeting on Monday, January 11.

andrew.greaves@ theboltonnews.co.uk