THOUSANDS of council houses in East Lancashire are set to be sold off in an effort to improve tenants' lives.

Rossendale and Pendle borough councils want to offload their 7,736 properties to housing associations to save money and fund improvements.

Neither authority can afford the £15 million needed to meet the government's Decent Homes Standard in the next ten years.

The private landlord taking over the properties under the 'housing stock transfer' scheme would be able to channel a massive investment into improvements.

Leader of Rossendale Council Peter Steen said: "Transfer is the only way forward for the housing stock. Tenants in Rossendale deserve better than we can afford to give them. We need to transfer the stock for the benefit of council finances and, more importantly, for the benefit of tenants."

Rossendale estimate the transfer of their 4,036 houses could bring around £40million in the next six years and Pendle's figures show £29million over the next three years.

Pendle Council leader Alan Davies said: "Tenants and residents have met on several occasions and carried out an in-depth investigation looking at how schemes work in other boroughs.

"They have come to the conclusion they will be better under a new registered social landlord based in Pendle and Pendle controlled.

"The council's overview and scrutiny committee have also looked at it and their recommendation is that it's a path we ought to follow."

Other authorities in East Lancashire have already off-loaded their council houses.

Burnley council signed over its stock of 5,300 homes to Burnley and Padiham Community Housing - now called Calico - in 2000. And Blackburn with Darwen council transferred their stock to Twin Valley Homes a year later.

Both Rossendale and Pendle will look to apply to the Government for transfer next year. The local authorities must hold a ballot of tenants over the move and face costs of around £500,000 if the vote goes against them.

Rossendale councillors voted to go ahead with the scheme at a meeting of the executive on Wednesday and Pendle members will debate the move later this month.

Other options of the council remaining as landlord, setting up an arms-length management company and transferring to a private company as a private finance initiative have all been ruled out by both authorities.