The management of council house stock in Leeds is to undergo the biggest shake-up in its 70-year history.

The control of housing stock will be handed over to six new so-called Arms Length Management Organisations (ALMOs) on Thursday.

The new organisations will be responsible for collecting rent, managing the properties and arranging repairs, but the housing stock will still be owned by the city council.

The council will also continue to set the rent levels and stay in charge of housing policy.

'Decent' standard

The move to the new system also puts council homes in Leeds in line for a �55m cash injection if the ALMOs' services are judged to be "excellent".

The Department for Transport, Local Government and the Regions could make the money available to spend on bringing council housing up the to "decent homes" standard by 2010.

The council's executive board member with responsibility for housing, Councillor Richard Lewis said: "This is a hugely positive move.

"The city's ALMOs are smaller organisations, which can provide more of a focus on tenants."

'Enabling tenants'

He continued: "Whilst the changes will certainly bring in much needed investment, this is not just about putting cash into improving council properties.

"It's about enabling tenants and staff to play a more important role in deciding the future of homes in Leeds."

But John McDermott, the Unison housing steward, who ran a campaign with council tenants to oppose the move said: "This is the first step to privatisation.

'Less accountability'

"It's an extra layer of bureaucracy which costs money."

And he added: "This money must be paid for by tenants and taxpayers, its money which should be spent on tenants' homes.

"There is no guarantee of extra money for investment.

"We believe the ALMOs will be less accountable to the tenants."