Consultants preparing report on future of 4,000 council houses in Shropshire

It is understood that one of the options being examined for the Shropshire Council-owned homes, in Bridgnorth and Oswestry, would be the sale to another housing group.

Shropshire Council has confirmed that the properties, currently managed by Star Housing, are under review but the authority's leader has insisted that no decision to sell has been made.

The report, being carried out by Savills, is due to be completed by the end of next month.

Andy Begley, Shropshire Council's director of adult services, said the authority wants to assess the "best possible options" for the future of the homes.

He said: "We have commissioned Savills to do an assessment and produce options on our behalf. They are looking at the best possible options, and the future of the council housing stock. We are expecting their report to be complete at the end of May."

Councillor Malcolm Pate, the authority's leader, said: "There is no decision that has been made to sell any of the housing stock whatsoever.

"Obviously because of the financial predicament of the council we are looking at all options but people should not read too much into me saying that.

The council leader said that the report would mean that any decision is taken on the best evidence possible.

He said: "All of these things we are looking at, it does not mean we will do any of them. When you have difficult decision to make it is only right that you make those on the basis of comprehensive data."

Councillor Alan Mosley, Labour leader on Shropshire Council, said any move to sell off council housing would be "indicative of the desperate state of the council".

He said: "It would just show what a desperate state this council has got into. We should not be looking to sell off our homes in Oswestry and Bridgnorth to fill a black hole in funding to keep the council going.

"Once these valuable assets are gone I wonder what their plan-B is going to be, and the massive cuts in vital services will no doubt follow in a year or twos time. It is not solving our problem, it just fills a black hole in the budget for 18 months or so and once it is gone, it's gone."

Peter Nutting, Conservative councillor for Copthorne, said: "I think it is an open book and anything is possible. You do have to remember that Shrewsbury & Atcham Borough Council sold their housing stock for a large amount of money 17 years ago and that helped their finances tremendously.

"Also it is a bit of an anomaly that the council owns council houses in Bridgnorth and Oswestry and the rest of the county is managed perfectly well by housing associations."

Earlier this year Shropshire Council unveiled a plan to raise £50 million from the sale of land and buildings by 2020.