A crucial vote will take place this summer to decide the future of every council house tenant in north Oxfordshire.

The ballot will determine if Cherwell District Council's 3,900 council homes remain under the ownership of the council or transfer to a new non-profit housing association -- Charter Community Housing.

Tenants will be asked to vote within the next few months.

A campaign to make tenants aware of the facts of the proposed transfer begins this weekend when an information pack and a 15-minute video is delivered to every council house.

The pack includes the formal consultation document on the transfer, and a personal future rent calculation for every tenant.

During May, council staff will tour the area knocking on doors and answering questions about the planned transfer.

They will tell tenants that Government financial rules mean Charter Community Housing would have more cash to invest on repairs and improvements than the council.

Over the next ten years, the housing association would have £43m to spend -- £27m more than the council.

Cherwell council's chief executive Grahame Handley said: "The stark reality is that the council cannot invest what is needed in the homes, nor can we deliver the improvements that Charter Housing will be able to provide."

He said: "Things cannot stay as they are, and tenants have already been affected by changes brought in by the council just to make ends meet."

The council blames a financial crisis for the need to offload its homes. A shortfall in investment income and a cut in Government grants means a shortage of funds -- despite a 30 per cent rise in council tax.

If tenants vote in favour, the transfer could be completed by January or February next year.

Up to £8m of the money Cherwell would receive under the transfer would be used to build 600 new affordable homes.

Other councils in Oxfordshire, except Oxford City, have already transferred their housing.