Tenants and Labour councillors in Brighton are at loggerheads over the future of the city’s council housing.

Labour, the Liberal Democrats and the Greens all voted for an arm’s-length management organisation in a ballot held earlier this month to establish the views of the hung council’s political parties and tenants.

But a panel of tenant representatives voted seven to two in favour of a stock transfer to a new housing association, with the backing of the Conservatives.

Jack Hazelgrove, Labour chair of housing at Brighton & Hove council, said an ALMO was the only viable option for the local authority’s 13,000 tenants, who he claims back the proposal.

“The council carried out extensive research through a series of surveys. It is clear that tenants want to keep the council as owner of the stock,” he said.

The surveys, carried out in August and September, found 80% of tenants wanted an ALMO, on a 5% turnout.

John Jolliffe, a member of the tenant panel, said: “The council’s figures are out of date and based on people not having full knowledge of what an ALMO actually means.

“More consultation is needed to make sure tenants really know what the options mean. We are a one-star council with a risk of ending up with nothing,” he said.

The ALMO plan will go before the full council on 25 November. The council needs an estimated £169m to meet the decent homes standard by 2010.