The cash crisis has led to Sheffield Homes bosses voicing fears over the future of the city's council houses in a document, leaked to The Star.

The report details the massive gap in funds for continued investment and repairs of council homes over the next three years, once the £700 Decent Homes refurbishment project comes to an end.

The funding gap could widen to £900m over the next 30 years - and, if there's no investment in estates as a result, homes could become as run-down again as before, end up unpopular and ultimately be demolished.

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The report by Sheffield Homes, which runs the city's council house stock,said: "If we cannot find a solution to the investment gap it may mean that over time some properties and estates will become unpopular and very costly to maintain, leading to consideration of either disposal or demolition."

But Sheffield Homes' chief executive today stressed that was a "worst case scenario" and said he was committed to keeping council housing in the city.

Peter Morton said: "Demolitions would be a worst case scenario and I don't think tenants need to worry about this now.

"We have a huge demand for council housing so our drive is to find a way of getting the money.

"We are working very closely with the Government and council to find a way to bring in additional resources and everybody recognises a solution has to be found.

"It's not just about demolitions, that is one option among many, and we could just patch and mend homes.

"Currently there are no plans to demolish any properties and nobody is actively looking at demolitions."

Decent Homes paid for new kitchens, bathrooms and central heating but did not cover major structural defects, replacing heating systems and improvements to communal areas - and in many areas, these have continued to deteriorate.

The report predicts how the condition of homes will worsen and how much investment is needed.

It said a "considerable amount of work" is still required.

The Government is looking at how to fund council houses and is due to make an announcement next spring.

Meanwhile, Sheffield Council Leader Paul Scriven is to call an emergency meeting with tenants.

He said: "We will be meeting tenants' representatives so we can fully inform them and as a council we will be asking the Government what is happening.

"People's homes have been refurbished to a lovely standard but tenants have suddenly found there is no money in the pot to keep them that way."

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