WORCESTER councillors have taken the first steps towards transferring the city's 5,200 council homes to an independent landlord.

On what was described as a "sad day", members of the council's housing board voted unanimously to apply to the Government for a place on the 2002/3 Stock Transfer programme. Their recommendation will go before full council next Tuesday.

"I feel it is a very sad day because I believe in council housing," said Councillor Mary Drinkwater.

"But the plug has been pulled on us and we have no alternative but to go for stock transfer."

Coun Robert Rowden said: "I think a lot of us feel that whatever decision is made is going to be unsatisfactory but stock transfer is the only option."

Worcester City Council is facing a crisis over its council housing.

Members of the Housing Board and of the Housing Policy and Review Committee were told by their consultants HACAS Chapman Hendy that £52.4m was needed to be spent on the properties in the next 10 years to bring them up to the Government's standard.

The council estimates it may only be able to raise £24m - leaving a shortfall of £28.4m.

Board members dismissed the option to keep the homes in council ownership as the city council would be unable to obtain the funds needed for major renovations and day-to-day maintenance.

A decision on the future of the city's council homes was deferred 12 months ago, but councillors were told they could not delay any longer.

"The writing was on the wall 12 months ago and the tenants will have suffered because of the delay," said Coun Stephen Inman.

Coun Francis Lankester, housing board chairman, said stock transfer was the only option that offered all tenants a chance of a decent home.

If the proposal is approved by full council, an application must be made to the Government by January 11, 2002. If it obtains Government approval, Worcester's application is placed on a register and the council is given permission to consult residents.

Coun Lankester stressed tenants would have the final say.