COUNCIL housing in Newport could be a thing of the past within the next two years.

Newport council's cabinet is tomorrow expected to recommend handing over the city's 9,500 council houses to a new landlord.

If this proposal is taken up, it will trigger the launch of formal consultation with the city's council housing tenants - expected to cost more than £500,000.

Between nine and 15 months later, all the city's council housing tenants will then vote on whether to go ahead with the handover to a new landlord.

At least 50 per cent of tenants must vote for transfer before it can go ahead.

If they vote against it, Newport council can only claim back half the costs from the National Assembly - meaning they lose a minimum of £250,000.

Bettws Tenants and Residents Association meets this week to discuss the proposals.

Chairman Colin Symonds said that so far most tenants want to stay with the council.

He said: "They feel it's best to stay with what you know than go with what you don't know." He also said many tenants are worried about rent increases.

Recent consultation with tenants showed widespread concerns about the future under a new landlord.

Fear over rent increases emerged as tenants' main misgiving.

Council officers say it could take two years for the whole process to be completed - meaning that even if the plan gets a "yes" vote it could be 2008 before any change happens.

A report presented to the council in October found members had little choice but to take the option of transferring their housing stock to a registered social landlord (RSL), such as a housing association.

Council bosses believe it is the only way they can raise the £240 million needed to bring its housing up to standard targets set by the Assembly administration by 2012.

Rent would need to go up to £165 a week to raise this amount.

The alternative would mean less council housing earning decreasing amounts, leaving the housing department in the red within a few years.

If they transfer the stock, they can raise the necessary money and invest it within six years to meet the 2012 deadline.