Housing minister Lord Falconer said the tenants will now have a greater say in the management of their homes, as well as modernisation and repairs during the next five years.
Aragon is paying the council more than£31m to acquire the stock, following a vote by tenants last March in which 51 per cent supported transfer. The council intends using part of this receipt to meet the need for additional social housing.
Today's announcement brings the number of approved large scale voluntary transfers of local authority housing stock to 149, involving nearly 600,000 homes. These transfers have raised more than£9.5bn in private finance, to purchase and invest in the housing stock - a key part of the government's commitment to bring all social housing up to a decent standard by 2010.
1. Provision to set up Local Housing Companies (LHCs) appears under the Housing Act 1996. LHCs allow greater local authority and tenant participation than other Registered Social Landlords (RSLs) such as housing associations.
2. Under the Leasehold Reform, Housing and Urban Development Act 1993 a local authority proposing a transfer of more than 499 dwellings must first obtain a place on an annual programme approved by the secretary of state. Councils must then obtain the consent of the secretary of state under the Housing Act 1985 for each transfer after it has formally consulted its tenants.