The cost of transferring 1,571 council homes in Castle Point to a housing association has been estimated at more than £2.5million.

Consultancy and legal fees, financial and business planning costs would produce a final bill of £2,535,000, according to the council's consultants Beha Williams Norman.

The costs would be split, with the council paying £1,130,000, leaving the new housing association with the remaining £1,405,000.

Councillors will discuss the results of the borough's housing options assessment at a full council meeting on June 27 which recommends that the council continues to investigate proposals to offload the council houses.

The process was launched because research revealed that £60.5million is needed over the next 30 years to bring the standard of the council's 1,571 properties up to scratch. The transfer will only go ahead if tenants vote for the council to release its housing stock in a ballot next year. Pre-ballot consultations alone are estimated at £370,000. From this the council would pay £290,000, with £170,000 coming from the housing budget and £120,000 from the general council fund.

Council chief executive David Marchant said: "If the transfer gets the go-ahead, the cost will be covered by the transfer, but if not then that is just something the council will have to bear.

"We are really just getting the members' approval to note the recommendations of the consultation process and the working group that we have established and to sign that."

Council leader Pam Challis said: "You are looking at the transfer of nearly 1,600 houses, so it is going to cost money."

The proposals have to be agreed by councillors and sent to Government agency Go East for approval by June 30.

Dave Blackwell, leader of the Canvey Independent Party, said: "I think the council is basically putting all its eggs in one basket and all the services depend on this transfer, because that is where all the money is going to come from.

"We are paying more money per job on maintenance and repair of these houses than any other council in Essex and the contractors haven't had to produce a tender for the job for seven years. It cannot be right that they do not have to tender for a job."

The pre-ballot costs, estimated at approximately £370,000, include: l Consultancy fees l Legal fees l Independent tenant advice l Communication and consultation costs l Selection of the registered social landlord, normally a housing association l Independent ballot l Registered social landlord set up costs l Staff time.