06 February 2004
A council hoping to set up an arm's-length management organisation has received a setback from housing inspectors.
Your Homes Newcastle, due to become operational in April, gained only one star from the Audit Commission following a pre-inspection of its housing management services.
Although the result has no bearing on final funding, the Almo will need to gain at least two stars when it is inspected again in November if it is to borrow £348m to meet the decent homes standard.
According to the commission, prospects for improvement at Newcastle are promising. Gwyneth Taylor, policy officer at the National Federation of Almos, said it was not unusual for a council to receive one star prior to setting up an Almo and then improve before it is inspected again. 'It is well within striking distance,' she said.
Newcastle is one of 13 councils planning to set up an Almo in the third round of the programme.
Just three of the 18 Almos in round two are awaiting inspection results. The only failures have been in Leeds where just two of the council's six Almos gained two stars.
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