Wolverhampton council tenants and leaseholders this week voted to set up an arm’s-length management organisation called Wolverhampton Homes.

Eighty-four per cent of those polled backed the ALMO, with 16% opposing the plan. Forty per cent of eligible voters – 12,500 tenants – took part.

The council said the government had guaranteed an extra £42m for housing improvements in the first two years. Peter Bilson, council cabinet member for housing, said: “Tenants have recognised the importance of attracting investment into the city to improve their homes. More tenants will be involved in running estates,” he said.

A council statement said Wolverhampton Homes, due to launch in spring 2005, was “on course to secure £287m to improve homes by 2010”.

Local MP Ken Purchase said the result was not surprising because tenants had not received sufficient information about alternatives to ALMOs.

“An awful lot of money was spent informing tenants of the benefits of ALMOs with not a lot going the other way,” he said.

Bilson denied Purchase’s claims.

“We consulted on the issue for 18 months and tenants made it clear they did not want to pursue the PFI and transfer options,” he said.