WORCESTER'S council housing stock looks set to be transferred to a new landlord.

City leaders agreed last night to apply to the Government for a place on the 2002/3 Stock Transfer programme.

But concerns have been raised that it could spell the end for the authority.

"Without council housing we can say what future is there for the city council?" said Councillor Roger Berry.

"Without housing there will be no real purpose for the city council and I believe we'll see its demise."

A shortfall between rent income and the cost of home repairs has forced councillors to tackle the problem, which was deferred a year ago.

Members have calculated the council would fall £28.4m short of the total £52.4m needed over 10 years to haul the 5,200 properties up to Government standards.

"There's no shame in facing the inevitable as long as we make the best of it," said Coun Francis Lankester.

"We must look forward to the future and the only way to ensure decent homes for all of our tenants is stock transfer."

Coun Adrian Gregson said: "I don't think there's any doubt councillors want to put the rights and views of the tenants to the forefront.

"What I think we can say is that there will be full participation and full involvement with people whose homes we're talking about."

If the application to the Government is successful, tenants will be consulted and then balloted to decide whether stock moves to an independent or council-sponsored landlord.

But the proposal to transfer stock was not supported by all councillors.

"I reject the argument that we have no choice," said Coun Richard Udall.

"The choice is to get off your knees and fight for our tenants, their families and their houses."

Coun Ray Turner said he believed tenants in his ward were worried about the transfer.

"Whichever way we look at this I fully believe they're going to be losers," said Coun Turner.

"I conversed with many of my tenants in St John's and a good many of them are opposed."