Tenants of two Gwent councils are to vote on whether their homes are transferred out of the council's control.

People living in council homes in Torfaen and Monmouthshire will decide whether they want council housing to remain in the hands of the local authority or to be transferred to a new registered social landlord (RSL).

Both councils face mounting repair bills and say they cannot sustain levels of investment in social housing.

RSLs are not-for-profit organisations registered with and regulated by the National Assembly.

Monmouthshire council voted for tenants to make the choice and Torfaen council's cabinet has agreed to consult with tenants on the same issue.

Councillor Brian Hood, for Monmouthshire, said tenants now faced a "momentous" decision.

If the council keeps control of the housing it is estimated there will be a £31m funding gap by 2012 because of the new Welsh housing quality standard they need to meet.

Only two per cent of the stock is at the required standard.

Torfaen council's executive member for housing, Councillor Gwyneira Clark, told cabinet members a transfer of stock was the "only viable option".

She said: "Really there is no alternative as housing revenue levels are only sustainable for another three years."

Torfaen council has estimated it needs £480m in investment to meet and maintain quality standards - the guideline laid down by the National Assembly administration in 2002.

Newport council is also considering what to do with its housing stock. It has already established the independent Newport Housing Commission, due to report to the council in the autumn.

Caerphilly council says its housing stock is in good condition, but will need £97.7m to bring it up to the WHQS standard by 2012. It says the development of its business plan will release resources to meet the shortfall.

A spokeswoman for Blaenau Gwent council said an appraisal of housing stock is being carried out.