A NEW era for more than 12,000 people living in Burnley council houses dawned today as the entire housing stock was finally transferred to Burnley and Padiham Housing Company - amid acclaim from Government housing minister Nick Raynsford.

The groundbreaking move follows months of uncertainty over whether the £74million transfer would go through, doubt which lasted even until yesterday afternoon when council and new housing company chiefs at last signed the contracts with bank backers in Birmingham to allow the changeover to take effect from 9am today. It is the first major transfer of council housing to a social landlord, involving stock with an overall value less than the selling price necessary to make the deal viable.

Burnley was released from the negative equity trap when the Government stepped in to make up the £20million shortfall, allowing Burnley 's "free transfer" to go through - and setting a policy which other councils facing similar problems will follow.

Today, as council and company chiefs celebrated the 5,300-home transfer, which followed 90 per cent backing by tenants who voted on change, the minister welcomed the move.

He said: "This is a significant step toward our objective of making transfer a realistic option for a wide range of authorities." "I am confident that tenants in Burnley will benefit not only from modernised homes, but also from an investment programme designed to ensure that the maintenance and repair needs are met for the next 30 years."

Burnley council finance chairman Peter Kenyon welcomed transfer as a "brave decision" by a Labour council, taken solely in the interests of tenants.

It was, he told the council in his annual budget speech last night, the dawn of a new era for tenants which would see £30million-worth of improvements over the next five years and £195million over 30 years.

Council leader Stuart Caddy thanked tenants who had shown overwhelming support.

Wynn McGeorge, chairman of the new social housing company which took control today said both directors and staff were keen to start delivering the promises it had made to its tenants.

And Burnley council housing chairman Rafique Malik, the man who led the sell-off, said he was delighted the deal had gone through. But Independent group leader Harry Brooks poured scorn on Coun Kenyon's "brave decision" proclamation.

Housing in Burnley, he said, had been so badly managed over two decades, the council had had no option but to transfer.

The council had handed over a sick organisation with many of the same managers who had caused the problems in the first place, he said.

Pictured are (back, from left) Ian Saville, chief executive of Burnley and Padiham Community Housing; Coun Donald Hall, vice chairman; Nick Ross, director of finance. Front, Roger Ellis, chief executive of Burnley Council, and Wynn McGeorge, chairman of Burnley and Padiham Community Housing.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.