Wrexham's council house tenants have seen a rent increase

Specialists have been drafted in after tenants voted against a new landlord taking over the authority's homes.

Tenants are already facing rent rises of eight per cent this year under council cost-cutting measures.

AM John Marek says external advisors are not needed but the council's leader says the tenants asked for their help.

"There are highly paid council officers who could do the business plan themselves," said Dr Marek.

"They've already spent half a million on so-called independent advisors."

In March, 58% of Wrexham's 9,722 tenants voted against moving ownership from the council to a newly-created independent housing association.

But the decision has left a �1.2m hole in the council's finances, as it faces finding the money for improving the properties.

Councillors agreed to save money by raising rents by three per cent, on top of a five per cent rise already imposed for this year, and cutting 25 agency posts.

They also agreed to save �50,000 by reducing tenants' decoration allowances.

Finances

Other options to reduce the council's expenditure in the long term include closing estate offices and charging tenants for grass and hedge cutting, or doing away with the service altogether.

Wrexham council leader Shan Wilkinson said tenants agreed with the appointment of advisors.

"Following their meeting last Monday, the housing working party and the tenants told us that they want these advisers to help them pick their way through the difficult stages that lie ahead," she said.

The Welsh Assembly Government has told all Welsh local authorities that council housing must be brought up to the Welsh Housing Quality Standard by 2012.

Transferring the council's housing stock to an independent body offered the authority a way out of its financial crisis but it was not the cause of the problem.

The high level of council house sales and historically low rents have also led to the current financial situation.