Council homes are required to meet 2015 quality standards

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

The Scottish Executive said it would not be able to match the package which a yes vote would have delivered.

Meanwhile, Scottish Socialists said the ballot result was a blow for ministers.

Stirling Council has warned that the result would have "serious consequences" for the community.

The local authority will now begin drawing up plans to meet the cost of modernising its homes, which are required to meet quality standard targets by 2015.

'Knock out blow'

The council is planning to approach the Scottish Executive, as well as regeneration agency Communities Scotland in the coming months.

The authority said the decision not to transfer the 5,600 homes to Housing Stirling meant that its housing debt would not be written off and it could no longer give tenants guarantees on rent levels.

Communities Minister Malcolm Chisholm said he respected the ballot result, but urged tenants in other parts of Scotland to look closely at proposed transfer deals.

He added: "We will continue to support Stirling Council, but the plain fact is that what we can offer is nothing like as generous as what would have been delivered through a 'yes' vote to transfer."

Meanwhile, Scottish Socialist Party leader Colin Fox said the no vote was a knock out blow for the executive's housing policy.