THE Secretary of State for local government, Stephen Byers, is looking at Bolton's request to transfer control of its 22,000 council houses to an independent company.

About £800 million will be borrowed from the private sector so a new organisation -- known as the Community Regeneration Company (CRC) -- to bring the houses up to standard.

Unlike other schemes of its type across the country, Bolton Council will get the homes back after 35 years.

This is because under the scheme the CRC would borrow the money against the worth of the leaseholds on all the properties, instead of getting a one-off Government handout.

In a letter to Cllr Noel Spencer, executive member for housing, housing minister Lord Falconer said he was also looking very carefully at the plans and recognised the hard work of officers in developing the approach -- which spent three years on the drawing board.

Cllr Spencer said: "I am pleased that both he and the housing minister are taking an interest in our model and giving it a personal once over."

All three political parties on Bolton Council support the move and agree that a need for such change has been brought about through chronic Government underfunding for housing over successive administrations.

If the project is successful immediate repair and improvement work will be done in areas of the town that need it the most. Even if the CRC proposal is given approval by Mr Byers, it is the tenants who will make the final decision when it goes out for consultation.

The council is expecting a decision in the next few weeks.