A controversial deal is close to being struck which will pave the way for the transfer of Glasgow's council housing stock to the private sector.

The Scottish Executive and Glasgow City Council have been discussing the best way to bring in the change, which critics have labelled "privatisation by the backdoor".

The deal would involve the executive servicing the city's huge housing debt once a change in ownership is agreed.

Tenants' backing

Transferring the 80,000 council homes to a new community-based housing association is believed to be the only way of improving the area's housing stock.

More than �1bn of renovations are needed, while the council has an outstanding housing debt of �940m.

Council officials who have come up with the plan require the backing of tenants.

They will vote on the matter in a referendum to be held in the autumn.

Councillors also and need to find some way of financing the hefty interest payments on the existing debt.

The deal on the table would see the executive stepping in and servicing the debt.

Housing board

If the transfer goes to plan, the council will set up a transitional housing board to manage the handover.

Many tenants' groups are opposing the proposals and are rubbishing the council's attempts at consultation.

Opposition MSPs have already attacked the executive's commitment to improving Scotland's homes.

They allege there is no provision in the coalition's budget and have questioned Communities Minister Wendy Alexander's pledge to improve private sector housing through better repairs and common factoring.