Swathes of new social housing could be built in Gloucester for the first time since the 1980s.
Housing minister Kris Hopkins is to give make a key announcement at the Gloucester City Homes office at 1pm today (Tuesday).
It is widely expected that he will accept Gloucester City Council's bid to transfer its entire social housing stock to Gloucester City Homes, who already manage the thousands of properties on the council's behalf.
The housing stock transfer will allow the council to rid itself of most of its £62million housing debt. It had reached the 'debt cap' meaning it could no longer borrow money to build new social housing.
It could pave the way for hundreds of new homes for some of the 4,500 people currently on a waiting list to be rehoused.
City MP Richard Graham, who has led national talks to allow the transfer to take place, said: "No new houses have been built by Gloucester City Council for about 25 years and we have a shortage of social housing. I've spent two years discussing with ministers ways of doing this which don't increase the public sector borrowing requirement."
Mr Hopkins will arrive in Gloucester at 12.45pm to address tenants, housing bosses and councillors. He will then visit tenants in Oliver Close, in Tuffley, and Badger Vale Court, in Podsmead.
Tenant Andy Harley, chairman of the Gloucester City Homes' Housing Futures Residents Panel, said: "The debt write off is a huge step forward to making sure Gloucester City Homes can continue its good maintenance programme and commission new homes."
