Investment in properly insulated and heated homes will improve people's health

Jack McConnell First Minister

"The transfer of housing stock is the beginning of a process - one that will lead to better homes, stronger neighbourhoods and more jobs for the city," he said.

The proposals would see the transfer of the local authority's entire stock to Glasgow Housing Association (GHA), a not-for-profit organisation.

The Scottish Executive has struck a deal to clear Glasgow City Council's �900m housing debt if tenants accept the plan.

Labour councillors in the city agreed last year to recommend the transfer to GHA, which would have a �4bn budget over the next 20 years.

New investment

The Scottish Executive said Mr McConnell had given the proposals "detailed consideration".

He has now given the council the go-ahead to start stage two of its consultation and ballot tenants on the plans.

The first minister said the proposals would create more than 3,000 construction jobs while delivering "significant new investment" for Glasgow.

For most tenants it will mean famine tomorrow

Ian McInnes Campaign Against Housing Stock Transfer

"By transferring their homes to community ownership, tenants will reap real benefits - warm, dry homes with modern kitchens and bathrooms, guaranteed rent levels and a much greater say in the future management of their homes and estates.

"Health is more than just about the health service. Investment in properly insulated and heated homes will improve people's health and rejuvenated communities can give children a better start in life."

However, Ian McInnes of the Campaign Against Housing Stock Transfer claimed the proposals were "not sustainable economically".

He said: "For some tenants it could mean jam today. For most tenants it will mean famine tomorrow."

Councils in Dumfries and Galloway, Scottish Borders and the Shetland Islands are also developing similar schemes to the one in Glasgow.