New council houses are being planned for Brighton and Hove for the first time in a generation.

The scheme is one of a series of financial measures to tackle the £600 million bill to renovate and maintain council homes in the city for the next 30 years.

The council was left with the multimillion-pound black hole after tenants voted "no" earlier this year to transferring properties to a housing association.

More than 6,000 flats and houses in the city do not meet the Government's decent homes standard and need urgent repairs by 2010.

Despite a programme of massive savings, including dropping new kitchens and bathrooms for all properties, a £50 million gap needs to be filled.

Labour councillors have warned the cuts will mean only basic improvement are made to properties.

But Councillor Mary Mears, head of housing, said the new Brighton and Hove standard will focus on what tenants want and hit the Government targets.

Tory-run Brighton and Hove City Council will hold two crucial meetings with the Government next month in the hope of securing powers to build new homes on council-owned land.

Under-used sites on council estates could provide land for new shared home-ownership schemes, where the council and buyer share the costs of the property.

The homes will be aimed at young families and the rent returned to the council's coffers to subsidise repairs elsewhere.

Pilot schemes using housing companies, a partnership between councils and developers, are being trialled in a handful of areas across the country where half of homes will be shared ownership or for council tenants.

But the city council is looking at going further by borrowing against the value of its land to fund the building project itself, ensuring all new homes are affordable.

The last council home to have been built in Brighton and Hove is believed to have been in Lintott Avenue, Whitehawk, in 1988.

Coun Mears said: "We have to keep our families in the city and if we can find the opportunity to build some shared ownership properties we can deliver some for these young families.

"There is a real opportunity to do an amazing piece of work if we can unlock this land.

"We are getting to the stage when we are running out of areas to build on but there is a lot of land on estates.

"And by building new homes we are extending these communities."

The decent homes standard includes six criteria, ranging from kitchens which are no older than 20 years, bathrooms which are no more than 30 years old and adequate noise insulation.

Under the transfer to a housing association, all kitchens and bathrooms were to be torn out and millions poured into other improvements.

The council has had to cut back spending and plans now to meet only the minimum decent homes pass of four out of the six, replacing kitchens and bathrooms when this is necessary.

But some extra investment has been included after talks with tenants, including new entry phone systems, which are not required under the Government targets.

The benchmark has been dubbed the Brighton and Hove standard and a move from two-year to ten-year repair contracts will save £150 million.

Coun Mears said decisions on repairs will be made on the basis of need and not on what is the cheapest option.

Councillor Gill Mitchell, leader of the opposition Labour group, has criticised the new standard.

She said: "It is a very, very basic standard and they have called it the Brighton and Hove standard.

"Our tenants need the top standard for their homes, which is what we were offering in the previous administration."

But Tory Coun Mears said the council does not have the funds to offer the same improvements as under the transfer to a housing association.

Up to £81 million of savings will also be made by dropping some investment which will not contribute to meeting decent homes standards.

The conversion of bedsits will be put on hold, a cash incentive scheme to encourage people to buy their own home dropped, water mains upgraded when other work is being carried out and savings made to environmental improvements.

Coun Mears said the budget for environmental projects, which includes money for playgrounds, paths and gardens, would be cut back through reviewing contracts and not slashing services.

She said: "Since May we have been doing things more efficiently and effectively.

"I am not going to accept shoddy work on our estates.

"And we want to send out a very clear message - we are not cutting frontline services."

Councillor Bill Randall, Green Party housing spokesman, said the council should start by reviewing all land on and off estates.

He said: "Setting up a local housing company could give the council greater control of housing development and enable it to build homes again.

"However, it is imperative the council has a majority on the company's board to ensure 50 per cent all new homes are built for rent and low-cost home ownership."

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