The majority of council tenants in a Devon district have voted to keep the local authority as their landlord.
More than 75% of the 3,045 tenants who voted were against transferring stock from Mid Devon District Council to a housing association.
The ballot was held at the end of a consultation exercise by the council.
A council spokesman said: "The majority have voted to stay with the council even though the council believed transfer was in their best interests."
In the ballot, 2,301 tenants voted against the transfer and 744 in favour.
Eddie Dennis, leader of the council said: "Despite the financial restrictions placed upon us we will endeavour to continue to provide a high quality housing service.
"However the challenge remains to find the money needed for this. We must now consider how we are going to move forward.
"Difficult decisions will have to be made and we will work with tenants and staff when making them."