The council expressed disappointment at the decision

More than 68% voted against the deal, which would have seen a multi-million pound investment in thousands of homes by a local association.

Stirling Council delivered a warning that the result would have "serious consequences" for the community.

The local authority said it would now have to draw up plans on how it could meet the cost of modernising homes.

The council said the "no" vote meant that its housing debt would not be written off and it could no longer give tenants guarantees on rent levels.

'Disappointing' result

Stirling Council Deputy Leader John Hendry expressed his disappointment that the 5,600 homes would not be transferred to Housing Stirling.

He said: "It is clear that the consequences of this result are serious both for tenants and the wider community.

"Stirling Council will now need to explore how it can fund improvements and regeneration in the future, within the resources available to the council.

"We are all disappointed, but the council will work hard to ensure that we continue to deliver the best possible housing service with the resources we have."