COUNCIL tenants in Hyndburn face a rent increase of more than three per cent in April.

The rise will add about £1.50 a week to the cost of a council property, which is currently £42 a week.

The council says the 3.07 per cent increase is lower than the 3.96 per cent recommended by the Government because of low property values in Hyndburn.

But town hall coffers will still be £275,000 down on last year's estimate for rental income, according to a report by housing portfolio holder Councillor Tony Dobson.

This has been attributed to an increase in the number of tenants buying their council property -- some 90 tenants took advantage of the "right to buy" scheme last year.

Tony Dobson, said: "I think the increase in right-to-buys is because the Government were thinking of closing that legislation so people thought 'let's get in now and get it sorted.'

But it's causing us a problem because we only get 25 per cent of the receipt, the rest goes to pay off the debt to central government.

"It means we have less income coming in on a weekly basis which squeezes the repairs budget -- it's catch 22.

"Because we have less money coming in we have properties standing empty and we haven't got the money to invest because it costs so much to get them up to standard."

The council is investigating the possibility of selling its 3,600 properties to a housing association similar to Blackburn with Darwen's Twin Valley.

Tenants voted to examine that option out of four put before them after the council revealed it would cost £2million to bring the homes up to to Government's decency standard.

If the proposal goes to the next stage, all council tenants would be balloted on the move.

Hyndburn and Rossendale Trade Union Council says the council should retain ownership, fearing an even greater increase in rents.