FEARS of asbestos in Burnley council houses put the brakes on the £74million transfer of the entire housing stock to the town's new housing company.

Disclosure by the council that many properties built in the late 1940s and '50s contained an asbestos substance sent alarm bells ringing at NatWest Bank, the deal's principal financial backers.

They sought explanations and guarantees on this and other points - a process which delayed the transfer due to be completed last week.

Today, Burnley and Padiham housing chief executive designate Ian Saville, chairman Wynn McGeorge and senior council finance and legal officers were travelling to Birmingham to sign the final transfer documents - but even as they left they were not 100 per cent certain the deal would go through today.

The company's director of housing designate Paul Buckley today played down the asbestos aspect of the delay.

"It was standard practice in the late '40s to cap houses with a form of asbestos, which is not dangerous.

"It is the word which is emotive and spooked the bank which asked for explanation of the position."

Mr Saville said asbestos was one of the last minute issues which had been raised by the bank and on which he believed agreement was reached late last night.

"It was a question of clarifying the council's responsibility in future," he added.

Burnley council housing chairman Rafique Malik said the transfer had been delayed by "one or two small matters".

If the company and council officers sign up, the entire 5,300-home housing stock will pass out of council hands today.

That will give the green light to £30million spending on house improvements over the next five years and a total £200million over 30 years.

The new company has already announced details of £6.5million home improvements in the first year alone.

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