Blair and Brown's plans for council housing were rebuffed by delegates to the Labour Party conference.
They voted by a larger than eight to one majority to reject the government's attempt to force councils to get rid of their public housing stocks.
European legislation requires that all council homes are brought up to a decent standard by 2010. New Labour's solution is to give the homes to private companies which will milk money out of tenants and leaseholders on former council estates via three options of large-scale voluntary transfer, PFI or ALMO (arms length management organisation.)
Delegates preferred the "fourth option". This allows local authorities to invest directly in council housing.
This is the second year in a bers have defeated ministers who have repeatedly said there will be no additional investment options to fund improvements to council housing.
As with the other rare defeats the Blairites suffer probably won't make the slightest difference to what they actually do. Tenants fight back
More important is what is happening on some of the estates that are facing being given away to the private sector.
Tenants have seen through what the transfer means. In ninety-two local authorities New Labour's plans have been rejected.
Tower Hamlets Against Council Housing Transfer (THATCH) activist said "we won two of the latest estate ballots on stock transfer. Lincoln estate in Bow voted 57% no, and Wapping estates voted 57% no.
Finally we've turned the tide. Tenants are seeing through the hard sell and promises to the reality behind 'housing choice'. We need to organise on every estate NOW to make sure tenants know there's an alternative."
A national lobby of parliament is being planned - keep 8 February free! Association The Cranbrook Estate, made famous by the Little Britain series, whose residents have organised to oppose transfer to a Housing