COUNCIL bosses are due to discuss a looming £2m black hole in their long-term housing accounts next week.

Winchester City Council has more than 5,000 properties on its books, and is upgrading many to meet new Government targets.

Westminster wants all local authority housing to reach the "Decent Homes" standard by 2010.

Last month, council cabinet members in Winchester were advised that the district should meet the target 12 months early.

However, head of housing and landlord services, Richard Botham, said it would be costly to maintain the council's stock to the Decent Homes level.

The main issue would be replacing old heating systems, he added.

Members agreed to discuss the situation in more detail at their next cabinet meeting, which takes place on Wednesday (March 26).

In a written report ahead of the meeting, officers have put a price on the maintenance bill.

"A strategic review of heating systems concludes that to maintain the Decent Homes standard for future years will require investment of over £9.7m per annum compared to the current available resources of £7.7m," the document said.

Winchester already has to cope with around £8m of its annual rental income being pocketed by Westminster.

The money is used to subsidise poorer areas where local authorities have lower rental incomes and higher maintenance bills.

As a result, around one third of the cash paid by tenants in the Winchester district - who face average weekly rents of £80.81p - is sent elsewhere.

The council is lobbying Westminster to change the system.