Two more transfers in the balance

Coventry city council has been forced to negotiate an extension on its ambitious plans to transfer its 20,349 homes in case it cannot complete this year. Burnley borough council is also fast running out of time on its plan to switch its 5,354 homes.

These are only the latest hitches in the biggest but most troubled transfer programme so far.

Both Burnley and Coventry are dependent on a swift government decision on the treatment of overhanging debt, which still looks some way off.

Coventry city housing officer Roger Griffiths explained that the scheme could not complete until it had secured a grant from government to pay off the overhanging debt on the council's Housing Revenue Account.

He said: "Whether the issue is resolved in the next three weeks or nine weeks will have a dramatic impact on whether we can complete by 31 March."

The ballot has now been put back until next month, and the result won't be known until just before Christmas. If the vote is positive the council has told the government that it will struggle to complete the deal by 31 March.

The council is currently asking government officials to be automatically placed on next year's disposal list to avoid having to bid again.

But Griffiths said: "I imagine we will be making a further bid to be on next year's programme as a contingency plan."

Burnley director of community services Ian Saville said the chances of completing his council's transfer this year were only "fifty fifty". He added: "We really want to go out to funders by late November, early December, so we need a decision soon. We don't want to be left until last."

These setbacks are just the latest in what has been the most difficult transfer programme to date. Three schemes have been voted out and another looks doubtful, one has been already been suspended, and at least one has had severe problems attracting funding.