HOUSING chiefs have lobbied Whitehall over radical plans to pump millions of pounds into upgrading Bolton's council homes.

In the biggest single project ever launched in the town, £800 million borrowed from the private sector would be used to bring the council's stock of 22,000 ailing properties up to 21st century standards.

But the first step is to get the approval of government housing minister Lord Falconer.

Bolton Council has been waiting for the go-ahead and this week met with the minister to talk through the proposals.

Chief executive Bernard Knight, director of housing George Caswell and executive councillor Noel Spencer told the minister they believe they have created a realistic alternative to how public housing will be financed in future.

"We got the opportunity to put the case to the minister thanks to our MPs," said Councillor Spencer.

"He said we will receive an answer as soon as possible."

Under the new proposals the council would establish a separate organisation to take control of its housing stock -- known as the Community Regeneration Company (CRC).

The council would lease its properties to the CRC over a 35-year period and the company would take over complete responsibility for them.

The non-profit making CRC, which would have charitable status, would then be free of borrowing restrictions which apply to local authorities, enabling them to take out massive loans to fund repairs and environmental improvements.

The loans would be repaid from revenue generated through council house rents. Experts have forecast this could be done within the 35-year life of the CRC.

The council currently owes £114m to the Government -- which it has borrowed for housing -- and this is rising by £10m a year.

Up-to-date estimates suggest that £150m is now needed to fund immediate repairs to council properties, with a total investment of almost £800m over the next 30 years.