Scottish councils have warned the Scottish executive that they may lose their housing powers if it goes ahead with plans for housing market area boards.

The boards, whose members would come from councils, Communities Scotland and other unspecified interested parties, would decide investment policy.

The Convention of Scottish Local Authorities is concerned that council representatives could be outvoted by unelected members.

In a report published last Friday, the convention said councils could be left with a merely administrative housing role while Scottish ministers micro-manage housing decisions.

The executive said proposals were at an early stage but councils fear that plans are further ahead than is admitted and that consultation arrangements are a “cynical exercise” to overcome their opposition.

An executive spokesman said: “We are committed to working closely with [councils].

A consultation on strategic investment will begin shortly and they are fully involved in that process.”