Chesterfield Borough Council has sold three of its garage sites and plans to sell more over the next year, it has emerged.
The authority needs to generate much-needed funding to help plug the gaps created by ongoing Government austerity.
Councillor Helen Bagley, the borough council's cabinet member for homes and customers, said: "We have carried out a review of the plot garage sites we own.
"Many of these are in poor condition and the cost of maintaining them is far more than the amount we receive in rent.
"Three have been sold already with plans to sell further sites over the next year.
"To make improvements to all of these garage sites, it would cost £4.5million from the money raised in rent paid by our tenants.
"If we were to do this, it would mean less funding would be available to make improvements to our tenants’ homes such as providing new kitchens, bathrooms and heating as well as improvements to our estates.
"Where garage sites have been put up for sale, we have made sure that our tenants are aware of this.
"When the sites have been advertised for sale, tenants have been welcome to bid for the sites along with other bidders."
The authority has received a 54.2 per cent cut in central Government funding since 2010-11.
During 2017-18, the council has to make another £209,000 of reductions, which bring the total amount of cuts since 2010-11 to £5.186million.