THE BODY responsible for bringing the borough's dilapidated housing stock up to scratch will NOT receive the funding it needs to begin the job next year - even if it passes an upcoming inspection.

Redbridge Homes had expected to be given £39 million by the Government if it achieved a minimum two-star rating from the Audit Commission next February - having failed to meet the standard in its previous assessment earlier this year.

But the organisation has now been told it will not receive the initial £7 million chunk of the cash promised for 2009/10 as part of the Decent Homes programme, EVEN if it passes the next assessment - with no money guaranteed for 2010/11 either.

The news means Redbridge's 4,700 council tenants will miss out on desperately needed improvements to their homes, many of which are in dire need of repair.

A spokesman for Redbridge Homes confirmed that the body - and its counterparts from three other boroughs - had applied for a judicial review of the Government's decision.

He said: "We had promised out tenants improvements to their homes that we can't make without this money.

"We thought we would receive the money if we passed another inspection, but the Government has told us we won't be getting any at all next year.

The uncertainty has been compounded by the prospect of a new Government next year.

Gary Porter of the Local Government Association (LGA) - which is supporting the councils' challenge, said: "The decision to withdraw the funding that was allocated to these bodies will have a serious impact on tens of thousands of tenants who are some of the poorest in our communities, living in housing that is most in need of repair.

"The news that long-awaited funding to tackle poor living conditions will now be delayed will mean that tenants will wait years for much needed home improvement work that could make a real difference to their lives."

Cllr Turbefield, Cabinet Member for Housing, denied that the decision would have an impact on repairs to properties but added: “We feel very strongly about the Government’s decision to defer funding, which could lead to a withdrawal in future years, and believe it’s important for them to consider the impact of this decision on affected areas.

"There was never any indication that the funding was not definite prior to receiving the letter in July and we, along with other councils, believe the goalposts have been moved.

"The council will continue to explore all avenues of funding for the improvements. The Decent Homes programme of funding aims to ensure all social housing meets a required standard which includes modernising and refurbishing homes."

The Department of Communities and Local Government has yet to comment on the issue.