TENANTS have been reassured that Hyndburn will not suffer a repeat of a multi-million pound asbestos claim against a neighbouring council.

The move came after yesterday's revelation that Twin Valley Homes is asking Blackburn with Darwen Council to repay the costs of removing asbestos from hundreds of former council homes.

The housing association claimed the authority had told it there would be no asbestos in the houses and declined to take out insurance in case the potentially fatal substance was discovered.

Councillors in Hyndburn have voted to explore the possibility of transferring ownership of its 36,000 homes to a housing association similar to Twin Valley.

Members of the council endorsed a decision made by tenants last month to investigate the possibility of a large scale voluntary transfer of the stock.

But Hyndburn Council has already conducted an asbestos survey of its properties and has taken the situation into account in its figures.

Consultation with tenants will begin in the New Year, ahead of a ballot in spring 2005 when they will decide whether ownership will remain with the council or transfer to a housing association.

Ken Bury, director of Hyndburn Homes, the council's housing organisation, said: "We carried out a major stock condition survey and did an asbestos survey so we are aware of all the asbestos within Hyndburn and it's all been taken into account.

"It's not a problem in the same way as in Blackburn. There is some asbestos but it's all priced up with the figures we are working out, so we shouldn't have a Twin Valley situation here.

"I think we would have to look at insurance at the time the tenants vote."

Tony Dobson, Hyndburn Council's portfolio holder for housing, said: "We will watch the situation in Blackburn and pick up any helpful hints to make sure we don't make the same mistakes."