Renfrewshire Housing Association campaigned for a yes vote

They voted 50.2% to 49.8% against the plans to transfer to the not-for-profit Renfrewshire Housing Association.

It is the third council area to reject such proposals, which the Scottish Executive says are necessary to bring homes up to decent living standards.

The council said transfer would unlock investment of �1bn over 30 years.

Under the concept of housing stock transfers, ownership and management of council housing is transferred to other "social landlords", although local authorities retain legal obligations over issues like homelessness.

The result of the ballot and the relatively low turnout is very disappointing Iain McMillan Renfrewshire Council

Opponents have argued that it represents a privatisation of municipal housing.

But supporters believe it opens the door to new investment and refurbishment that could not otherwise take place under council ownership.

Tenants in Stirling and Edinburgh have previously voted against stock transfers.

After the result, Renfrewshire Council's Iain McMillan said: "Both the result of the ballot and the relatively low turnout is very disappointing.

"We would not have put forward transfer as our preferred option is we had any doubts that it offered the best opportunity for the council's housing in Renfrewshire.

"Transfer offered a rare opportunity for investment in our housing, making available greater resources than even before."

'In tatters'

Scottish National Party housing spokeswoman Tricia Marwick said: "This latest decision leaves the Scottish Executive's flagship housing policy in tatters.

"It is time for Renfrewshire Council and the Labour and Lib Dem government to actually listen to tenants who simply want their houses improved without giving up democratic control."

She urged the executive to lobby the Treasury so that money which would have been used to write off the council's housing debt could still be made available to improve housing in Renfrewshire.

Three "wholesale" stock transfers have already taken place, in Glasgow, the Borders and Dumfries and Galloway, and smaller-scale transfers are in the pipeline.

'Generous package'

In Argyll and Bute, tenants have voted in favour but the transfer has yet to take place.

Ballots have yet to be held in two areas, Inverclyde and the Highlands.

Communities Minister Malcolm Chisholm said he was disappointed by the result of the vote.

"We will continue to work with Renfrewshire Council, but the plain fact is that the council cannot offer the generous package that would have been delivered through a yes vote to transfer," he said.

"Each transfer package is different and I urge tenants in Highland and Inverclyde to look closely at the options on offer to them in terms of rent levels, investment and tenant involvement and decide on that basis."