The council said it will have money for new homes

The local authority, which owns 15,500 properties, has agreed to apply to a Scottish Executive scheme.

Two years of discussions will have to take place before tenants are asked whether or not they support the idea.

Council leaders said the scheme would see the authority's �175m housing debt wiped out and trigger �50m in funding to build 1,000 affordable homes.

But unions like Unison and Amicus have dismissed the deal as nothing more than a bribe.

Doing less

The move is also opposed by the Highland Tenants' and Residents' Association.

Spokesman Donnie Kerr said councillors had already lost water and sewerage and trunk road maintenance and did not build schools any more, yet voters would soon be asked to pay them for doing less than they had ever done.

However, Councillor Margaret Davidson, who chairs the local authority's housing committee, said: "I am absolutely delighted that the council has grasped this opportunity to improve the well-being of the Highland community and our council house tenants by applying to join the Community Ownership Programme.

We will keep everyone involved fully as we progress this very detailed process Councillor Margaret Davidson

"The benefits for tenants are significant as are the opportunities for the council and partners to provide a good deal and more affordable houses.

"We understand that tenants and other interested groups have concerns. I would like to assure them that we will keep everyone involved fully as we progress this very detailed process.

"We have already given an assurance that any transfer is based upon rents being kept affordable, services maintained or improved and tenants retaining their existing statutory rights, including the right to buy their existing houses."

Her deputy, Councillor Sheena Slimon, said that the move would allow the council to reduce waiting lists and make more money available to improve the houses being transferred.

Councillors agreed on Thursday to apply to the Scottish Executive programme.

Potential problems

Under the proposals, any new landlord would have to be based in the Highlands.

Local boards, which will feature councillors and tenant representatives, would discuss any potential problems.

The new landlord would also be expected to keep council house rents affordable.